What are the Distinctive Features of a Loan or Advance against Inventory?
Key Distinctive Features of a Loan or Advance against Inventory:
- Loans or Advances against Inventory can be used at any stage and by any party in a supply chain acting as a seller and/or buyer.
- Inventory financing is typically confined to qualifying marketable commodities.
- Financing is usually arranged as a loan or advance against the inventory.
- The tenor of transactions will be short-term.
- Advances are usually made under a committed or uncommitted facility with an annual review.
