Solutions · Inventory financing
Inventory finance: free up the capital standing still in your stock
Inventory finance turns the money locked in your stock into cash, so that you can put it to work for growth, investment or seasonal peaks. You do not have to run your stock position down.
Working capital out of stock, without running it down
In trading and manufacturing businesses a large share of working capital is often locked in stock. That money stands still while you need it elsewhere. Inventory finance takes that brake off.
SOOF funds on the basis of the assessed stock value. You know in advance which percentage is released. The administrative burden stays limited: you submit stock lists periodically, not daily, and SOOF keeps a live view.
If your capital is locked in two places, in your warehouse and in your unpaid invoices, the combination with factoring works better than either one on its own. Which form suits which situation is set out in which type of finance fits you.
The biggest pitfalls in working capital finance
What goes wrong with factoring, inventory and business finance, and how do you avoid it? A practical guide for CFOs, controllers and treasurers. No sales story, just the details that matter.
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Is your stock already with the bank?
Your stock is often already pledged to the bank, which makes inventory finance look blocked. SOOF takes over that pledge and coordinates the process with your bank, so that the capital in your stock is freed up after all.
How taking over a pledge worksInventory finance in three steps
We establish the stock value
On the basis of your records and valuation method we determine the fundable value of your stock together.
You know in advance what is released
We agree the advance rate up front. Transparent, with no surprises afterwards.
You submit your stock lists
Periodically, not daily. On that basis SOOF keeps a live view of your position.
Who inventory finance works for
Headroom without selling
Your stock position stays intact. You free up the capital locked inside it, without selling off.
Experience with fluctuation
Seasonal patterns and swings in raw material prices? We have experience with changing stock valuations.
Little administration
Periodic submission of stock lists and a transparent advance. Minimal burden, maximum insight.
What others say
SOOF responds to the growing capital need in automotive. Vehicles on their way to their final destination are advanced against efficiently, so that we keep enough working capital to keep growing. Short lines, quick decisions, and a relationship that goes further than the transaction.
JAG Motors B.V. AutomotiveBottlenecks SOOF Finance solves for you
Your warehouse is full, your account is not. Does this sound familiar?
- A large part of your capital stands still in stock
- Your liquidity lags behind your buying, certainly around a seasonal peak
- Selling off is not an option, because you need that stock
- Your stock is already pledged to the bank
Inventory finance frees that capital up, without running your stock position down. If your money is also locked in invoices, you combine it with factoring.
Frequently asked questions
For SMEs with a substantial stock position. It is not an option for sole traders or one-person businesses.
Periodically, not daily. We agree a rhythm that fits your records. On that basis SOOF keeps a live view.
That depends on the type of stock and the valuation method. We make the percentage transparent in advance, so that you know where you stand.
Yes. Inventory finance and factoring combine well, often precisely at trading and distribution businesses with large stock and long payment terms.
Contact
Start with a conversation.
Send a message and we will get in touch, usually within one working day. Prefer to call? You will find our number at the foot of the page.
Jaap van AalstCommercial Director
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