Why Consider Inventory Funding for your Small Business  10/1/2021


Growing your business takes careful planning. If you’re like many small and medium-sized businesses, allocating financial resources to cover set expenses, investments, and finance growth strategies is where creativity and resourcefulness are needed.

 

It’s likely you have a list of growth initiatives that you believe will carry you to the next level. Finding the right funding partner allows you to stay flexible as you reinvest into your company to meet other growth opportunities. 

 

 

 

Top growth-focused projects for businesses at this stage include:

  • Expanding product lines
  • Increasing marketing efforts
  • Onboarding a fulfillment partner to support growing demand
  • Hiring additional personnel to meet changing business needs

Identifying the right resources to fuel your expansion can ensure you get and stay on a growth trajectory. But how do you do this? Business veterans will tell you that hastily selecting partners can set a business back, while avoiding the decision can cause you to miss out on key opportunities for long-term growth. The key to success is to take steps early to put resources in place to support opportunities when they occur.

 

Finding the Right Financing Partners

A key component in navigating these uncharted waters smoothly is selecting solid outside financial partners. This is especially important as you seek resources that aid in growth without squeezing existing budget lines that operate the business. The right financial resources can position you to:

 

  • Capitalize on market demand
  • Grow without adding burdensome debt
  • Fill new needs with scalable solutions

There are a number of possibilities for small and medium-sized enterprises, from traditional bank/commercial loans, business lines of credit, factoring, loans from family and friends, angel investors, venture capital, and inventory financing. We’ll be focusing on inventory financing and why it may work for your business.

 

Why Consider Inventory Financing

Inventory financing leverages the resources of a financing partner to pay for inventory production, which is one of the largest expenses many brands report. Funding can be customized to address your business’s exact manufacturing, shipping, and sales timelines so that you don’t make a payment on goods until the inventory sells. This works well with natural cashflow cycles.

 

The products produced typically act as the collateral for the financing, meaning that if the business reports an inability to repay the funding, the inventory can be sold to cover the debt.

 

Inventory financing is especially valuable to any business experiencing a significant delay between paying for inventory and receiving payment from retailers. It is also helpful for businesses that want to receive volume-based discounts by placing larger orders to support all of their sales channels. This works best when done on a quarterly or other regular basis and can help to prevent the stock-out issues that hinder growth.

 

The Kickfurther Difference

For physical product companies (CPG companies), or those producing shelf-stable consumables, a growth funding option that provides larger amounts than traditional financing and at faster speeds is inventory funding with Kickfurther.

 

Kickfurther is an inventory funding option, where the manufacturing costs are sent directly to suppliers, and paid back as the inventory sells. This payment system aligns better with natural revenue cycles than does the immediate repayments many traditional and online loans feature. Funding inventory through Kickfurther prevents growing businesses from having to pinch cash on hand and choose between paying for additional inventory or investing in the marketing, equipment, and staff needed to grow.

 

What are the Benefits of Working with Kickfurther?

  • 30% lower costs:
    • When you compare our rates to other forms of funding, you’ll often see you’re saving. Companies returning to fund additional deals often see their rates fall each time.
  • Higher funding opportunities:
    • We have an average funding of $78,000 but can fund up to $2MM to manufacture new inventory or get reimbursed for current stock and reinvest in where your business needs it most.
  • Funded in minutes:
    • Once approved, our community of backers fund most deals within a day, often within minutes to hours.
  • Custom payment terms:
    • Businesses create a custom payment timeline of 1-10 months based on their expected sales cycles, with no payments until you start making sales. This alleviates the cash-flow bottleneck lenders cause without customized repayment schedules.

Interested in inventory funding through Kickfurther? Create a business account today at Kickfurther.com

 

You can find Kickfurther at our upcoming Global Market: Fall Experience. If you are participating and would like to learn more, you can request a meeting with them today.

Editor's note: This article is sponsored content

 

Sean De Clerq

CEO and Co-Founder
Kickfurther

Kickfurther helps CPG businesses grow faster by funding their inventory and allowing them to pay back later as it sells. Brands have funded over $100M in inventory over the past five years with Kickfurther. Companies selling through any combination of direct-to-consumer, online, wholesale, or retail channels use Kickfurther to fund $20,000-$1,000,000 in inventory they’ll repay on a custom timeline of 1-10 months based on their sales cycles.

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