Inventory Financing Application and Due Diligence
After you have compiled the required business financials, there is still more work to be done which is discussed below.
Submitting the Inventory Financing Application
In case you have acquired all the documentation, you have to proceed with the application process. This is usually more complex than the application process for traditional lenders.
You have to complete the inventory financing lender’s application online and submit the paperwork through the internet. Certain lenders may require you to get the financials validated by a third-party agency before submission. Therefore, make sure you run a thorough check-in. If you are deemed fit, you will be contacted to start the due diligence duration of the application.
Review the Inventory Financing Offer and Begin to Due Diligence
Since the due diligence involves a considerable amount of effort, most lenders request you to enter into a loan agreement to prevent the risk of losing time with those borrowers who leave without completing the process.
Once the initial review is completed, the lender extends an offer regarding the line of credit amount, the small business inventory loan, the interest rate, and the terms they disagree with. If you are interested, you will have to pay the due diligence fee as an assurance to proceed with the loan.