Stock finance is provided by only a limited number of funders in the UK, in fact there are probably only four genuine providers of this type of loan; none of the major banks have this as a core facility albeit they will try to convince you otherwise. Funding will be done a formulaic basis and the loan facility will almost always sit alongside a Confidential Invoice Discounting Facility. Typically a company can expect to fund perhaps 25% of the raw material and finished stock value sitting in the balance sheet but there are a number of considerations for a lender not least the type and saleability of the stock and the likelihood of retention of title clauses inserted in terms of trade by suppliers.
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