What is inventory financing?
Inventory financing is a form of asset-based lending that allows businesses to use inventory as collateral to obtain a revolving line of credit. This line of credit can be used to purchase additional inventory or to help a business get through seasonal fluctuations in cash flow, among other situations.

Who should use inventory financing?
This financial product can be used by different types of businesses, including:

  • Small- to medium-sized retailers: One type of business that traditionally depends on inventory financing is retailers. While larger companies, such as Wal-Mart and Target, have larger institutional banks to borrow from and often have easier access to this form of asset-based lending, smaller businesses could benefit greatly from the same type of financing, but from an alternative source providing similar lines. Some of these companies generally don’t have the available capital or financial history to obtain a loan from a bank or might struggle during seasonal slowdowns, which is why the services of Crossroads Financial should be utilized.
  • Small- to medium-sized wholesalers: Another type of business that could benefit from inventory financing is wholesalers. Companies of this size might have a warehouse full of goods ready to ship over the coming months, but don’t have any resources available for the next production cycle, and for similar reasons have been turned down by a bank. In this situation, a revolving line of credit comes in handy.

How can inventory financing benefit a small business?
Retailers and wholesalers alike can experience many benefits, including:

1. Help keep shelves stocked – To continue to attract customers, and have product to sell, retailers will need to have product on the shelves. For small- to medium-sized businesses with limited available capital, this can be difficult to do. However, with inventory financing, these companies are able to use the revolving line of credit to borrow on inventory and have the funds needed to keep their shelves stocked.

2. Provide financing when a bank says “No” – Another instance where small businesses might find this type of asset-based lending beneficial is when they are turned away from a bank. Small- to medium-sized retailers, as well as wholesalers with poor credit history or inadequate cash flow, might find it difficult to obtain financing from a bank. However, this isn’t the case with Crossroads inventory financing, as it allows a company to use current product as collateral.

3. Assistance during periods of lagging cash flow – While retailers see an influx of business during the holiday season, there are other periods during the year where sales may not be as high. During these times, cash flow could be lagging, which can make operating at normal levels difficult. Businesses that experience periods of slow cash flow can talk to Crossroads Financial for assistance.

In 2004, we created a niche in the financial marketplace:
Stand-alone Inventory lines of Credit are for borrowers who were traditionally ignored by larger Asset-Based Lenders and Banks. With many lenders reluctant or unwilling to lend against Inventory, preferring to focus on Accounts Receivable,  we saw an opportunity in the marketplace to provide a value-added service to these lenders and become their partners in their transactions, not their competition. Through these relationships, we have built an extensive network of lending relationships with factors, receivable lenders, and other asset based lenders who bring us the Inventory component of their transactions, while they focus on the Accounts Receivable, Equipment, or other assets. Please see below for some highlights of our Inventory Financing program:

  • Stand-alone Inventory lines of Credit for Borrowers traditionally ignored by Asset-Based Lenders and Banks
  • Revolving lines of credit on existing inventory of $500,000-$5,000,000+
  • Direct lender that will fund up to 50 percent of cost or 75 percent of Net Orderly Liquidation Value
  • Inventory revolving lines available in the United States and Canada

Companies that think Crossroads Financial could help them grow their business should contact us for more information.

How Can Crossroads Help You?

Crossroads is pleased to announce Crossroads Financial Retail– a new stand-alone Inventory Financing program for retail stores.  Traditional lenders find lending against Inventory for a retail difficult or ignore the retail space under $5,000,000.  Crossroads is pleased to announce that it has developed a program to assist these retails with working capital lines of credit starting at $500,000.


Crossroads Financial Retail:

  • Inventory Lines of Credit Starting at $500,000 – $6,000,000
  • Advance up to 50% of Cost
  • Revolving Credit facility that can grow with the business
  • Any Inventory qualifies! (except expensive Jewelry)
  • Can Fund Multiple Locations, Inventory in Transit, and Warehoused Inventory


Examples of Current Retail Clients:

  • $2,000,000 Revolving Credit Line for a chain of arts & crafts stores in the Midwest. The client, forced to leave a traditional bank after breaching loan covenants, turned to Crossroads to provide a working capital line of credit to assist in the turnaround of the business.
  • $500,000 Revolving Credit Line for an Adult Toy and Personal Care Online retailer. The company, experiencing rapid growth with a large increase in business, turned to Crossroads to provide an Inventory line of credit to assist in procurement of Inventory to meet growing consumer demand.
  • $500,000 Revolving Credit Line for an Online Distributor of Nutritional Supplements. The company, needing a line of credit to acquire competitors and grow the brand, turned to Crossroads to provide the Inventory Revolving facility and was able to increase web-presence, adding new revenue streams and increasing sales.


For more information, please contact Jarrett Levy at (561) 997-8627 or email jlevy@crossroadsfinancial.com. We work with intermediaries and consultants. Learn how you can increase your business today with Crossroads Financial.