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The only way to turly know if you can is to get out and talk with lenders. However, most lenders want to see that you turning over that inventory - ie converting that investory into cash - if it is sitting in storage - they might frown on that.1 of 1 people found this helpful
Why not try eBay or sell your entire stock to another retailer? - Might be a quick way to get the funding you need - especailly if you sell it at a great discount. There are also other wholesalers or retailers that could help you liquidate - like overstock.com or similar sites.
Thank you so much for your sound advice. I will check out overstock.com and sign up with eBay. My own e-commerce site should also be ready shortly.
You will not be able to use your inventory for collateral this is not tanglable collateral.1 of 1 people found this helpful
It is looked at as "in the eyes of the beholder collateral". Another word, what has value to you does not have value to all so they will not be able to sell your collateral for any worth if you default on the loan. Example: I have 50 bridal gowns valued at 50,000. Will all like them? Will they be in style in 10 years when the loan is due? HOWEVER...if I have 50 bridal gowns and one is Princess Diana's then this one gown is tangible collateral. This one gown is no longer a risk, but a sure investment guarentee.
Can you contact a boutique in Atlanta that you know is doing well. Talk to them about having a
"Trunk Sale with your inventory". Right now trunk sales are not moving around due to the gas prices
and economy. Better yet if you can do this in L.A. your price point is higher.
First focus on selling off the past and starting the new focus. You can also do this by creating a website
with your inventory featured on this, only you have to know you have limited inventory sizes, simply put SOLD OUT should someone what a size you do not have or your out of the fashion (it also shows you
are selling and customers cling to winners). Then restock with the sale. Stick to eCommerce until
the ecomony is better. Spend any rent money on marketing.
Thank you so much, and thanks for the example you gave because that helps put it all in perspective for me. I already have a website and have not been doing eCommerce only because I could not afford to employ someone to manage the showroom/warehouse in my absence, since I am always travelling. A friend in NC offered to stock this particular inventory (mainly my essential collection which is all silk jersey dresses and tops, but I thought it would be taking advantage of a friendship.) I guess I should consider that and give her a commission or pay for the storage space, then launch my eCommerce.
Thank you very much. As a creative person, I am always dying to create. I need to focus also on selling.
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I am a designer and had a show room at the Apparel Mart in Atlanta, but unfortunately, I was not writing enough orders to pay the $2500 a month rent, so I closed the showroom and put the entire stock in storage to join my husband who is consulting in Peru. The inventory is worth about $150,000. I have never taken a loan from a 3rd party to run the business. I have been fortunate enough to be financed by my husband, but I want to start managing on my own. My goal is to open a small boutique instead to sell directly to both consumers and buyers and to launch my e-commerce. I hate to leave all that inventory in storage, so I was hoping to open a boutique here in Lima, sell off the old stock and produce new collections. Is there a way to get a loan of about $50,000 using my inventory as collateral as our personal credit score is not that perfect.