Inventory Financing Company for Startups & SMBs
Get Working Capital against Unsold Inventory
What is Inventory Finance?
Inventory finance is a type of working capital finance under which businesses with unsold inventory can get access to funds against stock that will be warehoused for a certain period of time before being sold. With inventory finance, small businesses can acquire funds which would otherwise have been stuck in their unsold inventory and use it to pay business expenses or acquire additional inventory. With inventory financing, one can also remove the hassle of negotiating more credit period with suppliers who want to get paid earlier. Under Inventory Finance, a buyer or an importer can sell his unsold inventory to a financial institution like Drip Capital. The inventory finance company then transfers 80% of the inventory value to the buyer. The buyer can buy back his inventory as and when he needs it, instead of having his working capital stuck in inventory that he will not immediately sell. Global Trade is one such avenue where working capital efficiency can be marginally improved with inventory finance solutions that improve cash flow for importers. Any buyer or importer engaged in International Trade should explore the benefits of inventory finance for growing their business.
Why Inventory Finance?
Most buyers or importers buy their inventory in bulk for stock maintenance and to reduce cost. Selling the inventory depends on seasonality and market conditions, which leads to their working capital getting locked in unsold inventory. This causes a cash flow issue which hampers their growth in several ways. The business faces difficulties in meeting business expenses, buying additional inventory, and paying its suppliers. An inventory finance solution that provides access to funds against inventory and the flexibility of buying back inventory when required can help buyers with growing their business without worrying about working capital.
Unlock working capital stuck in unsold inventory
Work with a wider range of suppliers with no disagreements over credit period
Optimize working capital with additional cash flow
Grow your business with additional cash at your disposal
Get access to additional credit line over and above your bank’s credit facility
Reduced dependence on Banks for working capital finance
How Inventory Finance Works?
Goods are purchased and stored in a public warehouse.
The buyer sells his inventory to an inventory finance company like Drip Capital.
Drip Capital releases 80% of the inventory value.
The buyer buys back inventory as and when required.
Why Choose Drip Capital?
We are a fintech company focused on solving the working capital problem for emerging market SME exporters by leveraging data and technology. We are re-building core parts of international trade finance infrastructure to level the playing field for small businesses.
You can avail a credit line up to $2.5 million and immediately boost your cash flow.
Cost of financing can be as low as 0.5% per month basis credit evaluation.
Drip works with the majority of public warehouses
Drip's Inventory Financing is paperless, swift and hassle-free
Why Partners and Customers Trust us
$8 Billion+
Trade Financed
9,000+
Buyers & Suppliers
100+
Countries
100,000+
Cross-Border Transactions
Growth Stories
Seafoods Trader in Florida
Drip's credit line and financing process is transparent and works perfectly with our current bank. Thanks to them we are now able to purchase best quality products from reputed suppliers at attractive prices by paying upon shipment. I can now say that we're maximising our cash-conversion cycle in true sense.
Owner
Meat Wholesaler in California
We were able to accept more orders from existing customers and also started working with some of the popular retail chains. This meant that we had to keep our cash flow healthier than ever to fulfil this increase in demand. It's a nice problem to have as a growing business and it helps when you have a partner like Drip.
Head of Sales
Coffee Importer in Florida
Using our bank lines to pay suppliers while cargo is still on water didn't fit very well with our working capital cycle, and we wish we would've known about Drip earlier. They have been really supportive in our growth and are helping us scale faster through both inventory and supply chain finance.
CFO
Frequently Asked Questions
How to apply for Inventory Finance?
You can click on “Apply Now” and submit your contact details in the form on our website. Our Inventory Finance specialist will call you within 24 hours to understand your requirements.