Stock financing is always done in conjunction with accounts receivable financing. Stock financing goes up to a maximum of 80% of paid stock.
For which companies is stock financing interesting?
- Companies with a minimum turnover of 10 million euros and/or a financing requirement of 500,000 euros based on existing stocks;
- Companies with large inventories;
- Companies growing fast;
- Companies storing goods for long periods;
- Companies with a lot of value in stock;
Procurement finance
Here, the financier provides funds based on specific sales orders with which the company can finance its procurement. Examples include LCs, CADs and guarantees. Purchase financing is suitable for (importing) trading companies that buy on the basis of sales orders. Procurement financing is always done in combination with factoring of accounts receivable and inventory financing. This covers the entire business process from procurement to sales.
A variant or rather extension of factoring is procurement finance.
