Features and benefits
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Get quick approval
We provide inventory financing with minimal documentation and easy eligibility. Upon meeting the eligibility, you can get quick approval in just 48 hours*.
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Ease in repayments
Borrowers can choose to repay their loan amount with a flexible tenure ranging up to 96 months.
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Flexi Loan facility
Bajaj Finance brings the Flexi Loan feature, where you can borrow funds from a pre-approved loan amount. Pay interest only for the sum withdrawn and lower your EMIs by up to 45%*.
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High-value loan amount
You can now expand your inventory with our substantial loan amount of up to Rs. 80 lakh* (*inclusive of insurance premium, VAS charges, documentation charges, Flexi fees, and processing fees).
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Collateral-free funding
Get financing without having to pledge any personal or business assets.
How inventory financing works?
Inventory financing is a type of short-term loan or line of credit that businesses use to buy products for resale. The products act as collateral for the loan, which means the lender can sell them if the borrower defaults. Inventory financing helps businesses maintain cash flow, update product lines, and meet customer demand.
Types of inventory financing
Inventory financing is a form of asset-based financing that uses inventory as collateral for a loan. There are two main types of inventory financing: inventory loans and inventory lines of credit. Inventory loans are lump-sum loans that are repaid over a fixed term with interest. Inventory lines of credit are revolving loans that allow the borrower to draw funds as needed, up to a certain limit, and pay interest only on the amount borrowed.
Advantage of inventory financing
Inventory financing is a way of borrowing money to buy products for resale. The products serve as security for the loan. Inventory financing has some benefits like:
- It helps businesses keep cash flow and boost sales by meeting customer demand.
- It does not need a high credit score or a personal guarantee from the borrower.
Some drawbacks are:
- It can be costly and risky for the borrower because of high interest, fees, and storage costs.
- It can reduce the borrower’s flexibility and control over the inventory because of the lender’s restrictions and monitoring.
Advantage and disadvantages of inventory financing
Inventory financing is a way of borrowing money to buy products for resale. The products serve as security for the loan. Inventory financing has some benefits and drawbacks for businesses.
Some benefits are:
- It helps businesses keep cash flow and boost sales by meeting customer demand.
- It does not need a high credit score or a personal guarantee from the borrower.
Some drawbacks are:
- It can be costly and risky for the borrower because of high interest, fees, and storage costs.
- It can reduce the borrower’s flexibility and control over the inventory because of the lender’s restrictions and monitoring.
Eligibility criteria
One of the many benefits of approaching Bajaj Finance for inventory funding is the minimum eligibility requirements. You can now avail of high-value funding by meeting these simple parameters:
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Age
24 to 80 years*
(*age should be 80 years at loan maturity).
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Business vintage
Minimum of 3 years
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CIBIL Score
Check your CIBIL Score for FREE685 or above
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Citizenship
Must be a residing India.
Documents required:
- KYC documents - Aadhaar/ passport/ voter’s ID
- PAN card
- Proof of business ownership
- Other financial documents
Interest rate and charges
Inventory financing by Bajaj Finance comes with nominal interest rates and no hidden charges. To view the list of the fees applicable on this loan, click here.
Why do businesses use inventory financing?
Businesses use inventory financing to leverage their inventory assets to obtain funding for operational needs such as purchasing additional inventory, paying off debt, or expanding the business. Essentially, inventory financing allows businesses to put up their inventory as collateral to secure financing. This type of financing is particularly useful for businesses that have a large amount of inventory tied up in their operations, as it provides them with the necessary cash flow to run their business while maintaining their inventory levels. Inventory financing can also be a good option for businesses that have seasonal demand for their products and need cash flow to maintain operations during periods of low demand.
How to Apply
To apply for inventory finance, simply follow these steps:
1. Click on the ‘APPLY' button on this page.
2. Enter your 10-digit mobile number and OTP.
3. Fill in the application form with your basic details, such as your full name, PAN, date of birth, and PIN code.
4. Once you enter all your details, please click on ‘PROCEED’ to visit the loan selection page.
5. Enter the loan amount that you need. Choose from our three business loan variants – Term, Flexi Term, and Flexi Hybrid.
6. Choose the repayment tenure – you can select tenure options of 12 months to 96 months and click on ‘PROCEED’.
7. Complete your KYC and submit your business loan application.
Frequently asked questions
Inventory financing is a type of loan that allows businesses to use their inventory as collateral to secure funding. This type of financing is particularly useful for businesses that have a lot of inventory that is tied up in their operations and need to free up cash flow to maintain their business.
After filling up the application form, you will need to submit the necessary documents to our representative. Upon successful completion, the loan application will get approved, and you will receive the amount in your bank account directly.
Here are a few types of business loans available:
- Term Loans
- Equipment financing
- Invoice factoring
You can improve your credit score by customising your credit limit, avoiding too many debts at the same time, making timely payments, etc.
You can repay the loan using ECS, direct credit, or postdated cheques.
Some examples of inventory financing are:
- A clothing retailer borrows money from a bank to buy new clothes for the upcoming season. The clothes act as collateral for the loan.
- A car dealer uses a line of credit to purchase new vehicles from the manufacturer. The vehicles serve as collateral for the line of credit.
- A jewellery store obtains a loan from a finance company to buy more gold and diamonds. The gold and diamonds are the collateral for the loan.
Inventory loans are one-time loans that are repaid over a fixed term with interest. The borrower receives the full loan amount upfront and pays it back in installments.
Inventory lines of credit are revolving loans that allow the borrower to draw funds as needed, up to a certain limit, and pay interest only on the amount borrowed. The borrower can reuse the available credit as long as they repay the principal and interest.
