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6 Replies Latest reply: Sep 11, 2011 5:19 PM by nushoes RSS

Need Money for Inventory - Best Options

waddellba Newbie
Currently Being Moderated
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
    waddellba Newbie
    Currently Being Moderated
    Thanks for the information.. I do have a good business plan, but I wasn't aware of SCORE, I will check with them to look for some financing.
  • Re: Need Money for Inventory - Best Options
    Bridge Expert
    Currently Being Moderated
    Take your sales ordres to your distributor/manufacturer.

    They will probably sell to you on credit with orders in-hand.
  • Re: Need Money for Inventory - Best Options
    dltmgmt Newbie
    Currently Being Moderated
    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.
  • Re: Need Money for Inventory - Best Options
    phanio Master
    Currently Being Moderated
    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
  • Re: Need Money for Inventory - Best Options
    waddellba Newbie
    Currently Being Moderated
    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
    Currently Being Moderated

    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.

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