Stocking loans can increase customer choice, shorten lead times, and increase purchasing power
Stocking loans can increase sales, stock turn and profitability
Certain types of business just eat up your cash flow when trying to hold sufficient stock in order to provide customers with choice and sensible delivery times.
The saying, “You can’t sell from empty shelves”, definitely rings true, especially when your competitors have greater resources than you do.
In recent times, supply chain delays have given advantages to companies that can afford to place larger orders for stock further in advance. Stocking loans are one way to combat long lead times and to buy up scarce product lines when they do become briefly available.
For a secure cashflow and to give your customers more choice. First Oak Capital works with a range of stocking loan providers to ensure you get a facility to match your requirements.
What stocking loans can be used for
Examples of uses for unit stocking finance are, but not restricted to:
- Cars
- Commercial vehicles
- Plant equipment
- Motorhomes
- Campervans
- Touring caravans
- Retail
- Anything else!
Let us know what your requirements are and how this will benefit your business and allow First Oak Capital to source you a competitive and flexible stocking facility that is also extremely tax efficient.
WHY FIRST OAK CAPITAL?
Helping Since 1994
Benefit from our 30 years of experience and expertise in commercial finance brokering
Competitive Industry Rates
Increase business growth and save money with highly competitive industry rates
Access Over 100 Lenders
Access to more than 100 lenders in the UK finance market
Funding Within 48 Hours
Once approved, funding can be provided in as little as 48 hours
FAQs
This really depends on what kind of goods you are selling. More expensive goods like motorhomes or commercial vehicles will probably have the finance secured against each individual vehicle as they can easily be identified. Lower priced goods for a retail business may be more likely to be offered a revolving credit facility where you can draw down funds when you need them and pay them back when you don’t. Alternatively a merchant cash advance could be provided where repayments are paid from your credit card takings.
Yes , we do have funders who will help niche vehicle providers or coach builders who take base vehicles and convert them into unique campervans, hearses, catering units, wheelchair access etc
A stocking loan is a type of loan that allows companies to borrow money by using their inventory as security. The lender holds the inventory as collateral and the borrower pays interest on the loan, until the item is sold, at which point the capital is repaid.
The financing of unit stocking plans is either handled by the car manufacturer itself or by banks or other lenders. By using auctions, other dealers, or private sales, dealers can get vehicles they want without using their own funds or tying up their cash in inventory.
A wide range of inventory, including raw materials, finished goods, and work in progress, can be used as collateral for a stocking loan.
Interest rates for stocking loans will vary depending on the lender, the borrower’s creditworthiness, and the value of the inventory being used as collateral.
Stocking loans can only be used by businesses that sell physical products, but First Oak Capital will be able to suggest other types of commercial finance that can suit service providers.
The process of obtaining a stocking loan can vary, but some lenders may be able to provide funds within a few days of receiving the application.
If the loan is not repaid, the lender may have the right to sell the inventory used as collateral in order to recoup the loaned funds.
Unit stocking finance is another name for a stocking loan and is a frequently used term in the motor trade or for large-cost single items of stock. A “unit” could be a vehicle or piece of equipment and as a purchase is made the finance company will advance a percentage of the price to your bank account to pay for it until sold.
Have Questions? Let’s Talk.
For further information regarding stocking loans or other types of commercial finance we offer, please give our friendly team a call. We’re open Monday – Friday, 9.00-5pm. Or if you’re ready to get started, click the button below.
