Stock Finance is the ability to leverage cash flow from a recurring stock value – again, most lenders will insist on an invoice finance/receivables facility supporting this. Funders will look to offer funding lines between £500k – £5m and provide a Max 80% of Net Orderly Liquidation Value (“LOTV”) less reserves for employees, enterprise act, preferential creditors, ROT, Rent / rates and other reserves that may be required.

The Inventory is funded within pre agreed eligible premises with funding provided against Raw materials and Finished Good. There will be regular onsite audits and weekly the updates for the funder will be required around total stock value, cost of goods sold, cost of goods bought, new stock figure end of week.