We provide lender-ready capital raise packaging and debt or equity placement support for business owners and buyers looking to secure serious term sheets and close funding on a defined timeline.
For business owners and acquirers pursuing private debt or equity, submit your deal for review. We revert within one working day with next steps and either a quote for our services.
For pre-submission discussions, we offer paid consultations. To initiate underwriting and lender outreach, submit the deal.
Asset Based Lending And Working Capital
Inventory finance is not “cash against stock.” It is a controls-driven credit product that prices liquidation risk, shrink, obsolescence, and operational discipline. When executed correctly, it converts working capital trapped in goods into a revolving borrowing base facility with predictable availability and covenant governance.
Retailers and manufacturers use inventory financing to bridge procurement cycles, smooth seasonality, and fund growth without issuing equity. Lenders care less about your story and more about eligibility, auditability, and how quickly the collateral can be monetized in a downside case.
If you are structuring a facility, start with What We Do and submit through Submit Your Deal.
Inventory financing usually sits inside an asset based lending framework. Availability is calculated through a borrowing base certificate, typically as a percentage of eligible inventory, sometimes combined with eligible receivables. The facility is governed by collateral reporting, periodic field exams, and a collateral monitoring regime that can tighten or loosen based on performance triggers.
In practice, inventory is a difficult collateral class compared to receivables. It is heterogeneous, it moves, it can be damaged, it can be stolen, and its liquidation value can gap the balance sheet value materially. That is why inventory financing is defined by controls: reporting cadence, inspection rights, disposition controls, and cash dominion features.
Core concept: lenders advance against liquidation value, not retail price or internal cost accounting. Eligibility and valuation methodology drive real availability.
Retail cash cycles are often seasonal and promotion-driven. Inventory finance can stabilize procurement, support peak season buys, and reduce dependence on vendor terms.
Manufacturers carry raw materials, work-in-progress, and finished goods. Each class underwrites differently. The best facilities map to production realities and include controls for WIP convertibility and finished goods salability.
Inventory financing is rarely a single instrument. It is a package: borrowing base line, inventory sublimit, sometimes purchase order financing for specific suppliers, and often a receivables tranche when the business has stable B2B buyers. Many borrowers describe the objective as inventory financing, but the bankable structure is an integrated working capital facility.
| Structure | How It Works | Where It Fits |
|---|---|---|
| Borrowing base revolver | Availability equals advance rate times eligible collateral minus reserves | Ongoing working capital with predictable reporting |
| Inventory sublimit within ABL | Separate cap on inventory advances, with tighter eligibility and audits | Retail and distribution with clean inventory systems |
| PO financing overlay | Supplier payments funded against verified purchase orders and shipment milestones | Growth phases where inventory builds before sales convert |
| Trade finance line tied to imports | Funding linked to shipment documents, sometimes with documentary controls | Importer cash cycles with clear inbound logistics |
| Inventory plus receivables stack | Receivables tranche provides higher quality collateral and liquidity stability | B2B sell-through with invoices and low dispute rates |
Inventory eligibility is where real availability gets decided. Expect ineligibles, concentration limits, reserves, and valuation haircuts. If your CFO models availability using book inventory, you are likely overstating liquidity by a painful margin.
Inventory is collateral only if it is controllable. Lenders will price and approve based on your ability to produce clean perpetual inventory reporting, reconcile to financial statements, and allow field exams without chaos. If you want a large line, expect tighter controls.
Operational truth: lenders fund the reliability of your inventory system as much as they fund the inventory itself.
| Control Mechanism | What It Does | Why It Matters |
|---|---|---|
| Field exams and audits | Validates collateral existence, valuation, and reporting integrity | Prevents fictitious inventory and reconciliation drift |
| Appraisals and NOLV | Anchors advance rates to liquidation assumptions | Defines downside coverage and pricing logic |
| Collateral reporting cadence | Borrowing base certificates and inventory aging schedules | Drives availability and early warning signals |
| Insurance and loss controls | Named insured, loss payee, and coverage verification | Protects collateral value against casualty risk |
| Cash dominion features | Lockbox and controlled proceeds, especially when receivables are included | Prevents cash leakage and improves enforceability |
Retail and manufacturing inventory builds often involve imports. In those cases, inventory financing can be combined with trade finance tools that govern supplier payment and shipment documentation. If you are importing, lenders will care about bill of lading control, title transfer mechanics, and whether vendor terms or documentary conditions create hidden senior claims.
If your facility needs to interact with letters of credit or documentary flows, review Trade Finance and Trade Finance Services.
Financely operates as a transaction-led capital advisory desk for working capital and structured debt. We package inventory financing mandates into lender-grade submissions, align eligibility and control assumptions to market terms, and route mandates to matched capital providers. The objective is lender term sheets or written declines with reasons, not vague outreach loops. Where execution requires licensing, we coordinate execution through appropriately licensed partners under their approvals.
If you want an inventory financing solution, submit your inventory profile, locations, ERP stack, sales channels, and funding requirement. We will revert with feasibility, facility structure options, and a checklist sized to your reporting capacity.
NOLV appraisal methodology, inventory turn, shrink and write-down history, SKU concentration, and the lender’s control model. Finished goods often advance better than raw materials or work-in-progress.
Sometimes, but it underwrites tightly. Lenders usually require defined conversion cycles, traceability, and stronger monitoring because WIP liquidation assumptions are weaker.
Borrowing base certificates, inventory aging, location rollups, reconciliation to GL, and periodic field exams. Frequency depends on risk, facility size, and performance triggers.
Often, yes, because it is collateral-backed. The tradeoff is operational discipline: eligibility rules, audits, and controls that some businesses are not ready to run.
Reserves are a risk buffer for shrink, obsolescence, concentration, valuation uncertainty, and performance drift. They materially impact availability and must be modeled.
Inventory aging by SKU, locations, ERP screenshots or exports, recent financials, sales channels, supplier profile, and your target facility size and timeline. Use Submit Your Deal.
Inventory financing is a controls-first product. If your inventory system, reporting, and collateral governance are clean, the borrowing base can become a durable liquidity engine. If they are not, the facility will be constrained regardless of how much inventory sits on the shelf.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
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request a quote
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Email supportdesk@financely-group.com for general enquiries, press & partnership requests.
All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue. See our FAQ and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagements may be carried out through Financely Group LLC, a non-deposit-taking, non-banking financial company; Ashford Capital Advisory LLC; or another related entity.
Financely and its affiliates are not registered as securities broker-dealers and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.
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