Additional Business Financials you Have to Prepare for Inventory Financials
This requires you to have a great understanding of your own business, as well as a deep insight into your plans for it. Below is a discussion on the basic business requirements to get approved for inventory financing.
Business Tax Returns
In case you have been in the business for a considerable amount of time, you can easily produce records for the previous 3 years. You can show your long-term history to any lender.
Business Bank Statements
Almost all inventory financing applications will require you to provide bank statements. In case you have four months’ statement, make sure you add them. If you have more, you should include them. Note that you have to provide all the pages and not just the first one.
Make a list of the inventory you own, the details of its storage, and the estimated resale value. Remember that if your inventory is liquidated in case of a default, the lender will have to sell your merchandise at lower rates than the normal one. Therefore, the resale value would be lesser than the retail or wholesale value of the products.