Stock finance is a mechanism which releases working capital from stock such as finished goods or raw materials, which works by lenders purchasing stock form a seller on behalf of the buyer. Stock finance is different from invoice finance, and tends to be used as a 30-90 day revolving facility to enable access to cash as and when a business needs it.
What does Stock finance include?
Stock finance covers a variety of financial services designed to make cross-border and domestic trade easier. Due to the number of products available and variety of industries and goods covered, there are a wide range of tools used. These include import bills for collection, LCs, pre-shipment export, shipping guarantees and invoice factoring and discounting.
Stock finance includes
- Lending
- Issuing LCs
- Factoring
- Export Credit
- Insurance
Which products could be purchased
- Electronics products
- Watches
- Furniture
- Lighting
- Commodities
- Hardware
- Wood
- Cars
