![](https://apfinancing.com/wp-content/uploads/2024/06/WhatisInventoryFinance_v2.png)
What is Inventory Financing?
Inventory Financing, also known as “floor planning” or “wholesale finance” is a type of financing that a business uses to buy wholesale products to sell to retail customers. Inventory financing works by giving your business a line of credit to purchase and maintain inventory levels without straining cash flow.
AP Equipment Financing can provide floor plan financing solutions for manufacturers, suppliers, and dealers.
How does Inventory Financing Work?
For Manufacturers & Suppliers
Manufacturers and Suppliers can partner with AP to offer Inventory Financing Programs to their dealers or distributors to help them manage their inventory. This mutually beneficial arrangement allows the manufacturer to distribute more inventory without having to carry it on their open accounts while gaining the knowledge, experience, and expertise of AP’s team and maintaining your relationship with your dealers.
For Dealers
AP financing provides a line of credit for businesses to update product lines, increase inventory supplies during high demand, and to keep cash flow steady through busy and slow seasons.
AP’s programs are pay as sold, meaning the dealer does not pay AP for the product until they receive payment from their customer. Dealers can then pay through our convenient online portal.
The free flooring period set by the manufacturer will allow the dealer a period of time to sell the inventory without paying interest.
In industries where inventory turnover is high and capital needs are substantial, inventory financing can be a crucial tool for businesses to maintain a competitive edge and meet customer demand.
Want to learn more? If you’re interested in Inventory Financing for your business, we’re here to help. Contact our Floorplan Manager today to get started.
![Rena Waples Flooring Operations Manager at AP Equipment Financing](https://apfinancing.com/wp-content/uploads/2024/05/Rena-Waples_C.jpg)
Rena Waples
Flooring Operations Manager
Reach out to me today for more information on our Wholesale Floor Plan Financing program.