The Benefits of an Inventory Financing Program

AP Equipment Financing offers an innovative commercial financing solution that can benefit your bottom line. Inventory Financing (also known as Floorplan Financing) provides manufacturers, distributors, and dealers with the credit they need to buy and sell more inventory.

In industries where inventory turnover is high and capital needs are substantial, inventory financing is a crucial tool for businesses to maintain a competitive edge and meet customer demand. Manufacturers and suppliers benefit from inventory financing by selling more inventory while their dealers benefit from manufacturer participation, due to initial months of interest-free payments.

AP provides support to the manufacturers’ dealer network by offering Pay-As–Sold programs, which allow dealers to defer payment of the inventory unit it is sold to the end-user. AP Equipment Financing also administers monthly inspections of the inventory until it is sold.

Inventory financing allows dealers to have more inventory on hand that customers can see and touch. AP Equipment Financing partners with many industry-leading manufacturers of popular equipment. Through these manufacturer-backed programs, dealers will be able to stock more inventory without worrying about large upfront costs. This flexibility is critical in allowing dealers to stock the right equipment for their customers and maintain a competitive advantage.

Deferred Payment for Dealers: AP offers a Pay-As-Sold program, which allows dealers to postpone payment for the inventory units until they are sold to the end-user. Typically, dealers must pay for the inventory upfront or within a specified timeframe, which can strain cash flow. With the Pay-As-Sold Program, dealers can hold onto their cash until they make a sale, which can potentially free up capital.

Monthly Inspections: AP administers monthly inspections of the inventory until it is sold, which helps ensure the equipment is in good condition and concerns get addressed quickly.

Selecting the appropriate lender can provide your business with a significant competitive edge in the market while also adding value for your customers. Unlike many of our competitors we also offer end-user financing for your commercial customers. Here at AP, we can build comprehensive financing programs to fit all your needs whether you are a supplier or dealer. 

For more information, contact Rena Waples today!

Founded in 1998 and based in Bend, Oregon, AP Equipment Financing is a subsidiary of Tokyo Century (USA) Inc., the U.S. subsidiary of Tokyo Century Corporation. Tokyo Century Corporation, headquartered in Tokyo, has 7,800 employees, and offers specialty leasing and other high value-added financial services in more than 30 countries.

AP Equipment Financing is renowned for its reliability, consistently delivering innovative financial services and comprehensive expertise to ensure customer satisfaction. The affiliation with Tokyo Century Corporation grants AP the financial strength and resources of a large organization, while enabling them to uphold the swift and personalized service characteristic of an agile independent enterprise.