Post a new topic
    6 Replies Latest reply on Sep 11, 2011 5:19 PM by nushoes

    Need Money for Inventory - Best Options

    waddellba Newbie
      I just started a business, I am a approved dealer for several product lines in the Fire and Safety industry. I am looking to expand the business to more product lines, and looking to do some R&D work as well. The business is in my wifes name, so it is a Woman Owned Business, we need about $2500 to get some inventory. I already have 2 Fire Depts. willing to buy, but I need to have to product in hand, and just don't have the personal income to cover the cost. Since, we are a new business, we don't have any credit to get a loan from the bank... What would be our best options..

      Thank You.
        • Re: Need Money for Inventory - Best Options
          Bridge Navigator
          Take your sales ordres to your distributor/manufacturer.

          They will probably sell to you on credit with orders in-hand.
          1 of 1 people found this helpful
          • Re: Need Money for Inventory - Best Options
            dltmgmt Newbie
            You can do it through the companies you are working with. You can apply for a business credit card, business line of credit, or you can ask your bank if they do loans/lines using your account receivables as capital. Hope this helped.
            1 of 1 people found this helpful
            • Re: Need Money for Inventory - Best Options
              phanio Pioneer
              bridge makes a good point. Write the order with the fire depts, tell them you will deliver in a week. Take those order to your vendors and let them sell to you on credit.

              Other options - you will probably not qualify for a business credit card or business loan - but, you could bootstrap using a personal credit card - but, only use it for business purchases - and once you get paid, pay it off.

              There are also Micro Credit loans that can help you - usually take a few months or peer-to-peer loans that you might be able to get in a few days. We list several of these resources on our web site as well as information about how they work.

              Business Money Today
              www.BusinessMoneyToday.com
              1 of 1 people found this helpful
              • Re: Need Money for Inventory - Best Options
                waddellba Newbie
                Thanks for all of the help and suggestions.. I was actually able to get one of the departments to pay upfront because of the size of the order, which allowed me to get the smaller order as well, and once those are paid for I will be able to place an order just for inventory.
                • Re: Need Money for Inventory - Best Options
                  nushoes Newbie

                  Waddellba, I had some colleagues in a similar situation and what you ended up doing worked for them as well.  In a perfect inventory centric world, one would always have a surplus of capital for inventory, seamless shipping/billing where parcel audits are unnecessary, and distributors who always deliver on time. Unfortunately, the need for credit comes with the territory as do headaches regarding shipping, billing, and relying upon others. 

                   

                  In your case, you may have to pay a little interest to gain the credit you need for inventory, but it beats sitting on your hands and not getting your business off the ground. In addition, showing you can manage the agreed upon arrangement could pay dividends in creating relationships with long lasting benefits to your business. Good luck in expanding your business.