Inventory Financing lets manufacturers and distributors increase the volume of products flowing through their reseller chains while providing resellers needed relief from pressures to pay suppliers on standard terms. As a result, cash flow increases across the board and the entire distribution channel expands.
With Inventory Financing, manufacturers or distributors pay the interest charges on lines of credit extended to their resellers, enabling the resellers to enjoy zero interest charges for 45, 60 or even 90 days. With less financial stress and increased working capital at hand, resellers can move greater volumes of product—increasing profits for all.
Manufacturers and distributors
Benefits
If you’re a manufacturer or distributor, Inventory Financing provides an alternative to Open Account that lets you expand volumes through your distribution channel. With Inventory Financing, you finance resellers’ acquisition of your products. As a result, channel partners can move more product out to their end customers with less financial stress.
With Inventory Financing, you receive dependable payments from IBM Global Financing for the products you’ve sold to your resellers. We take care of settlements from the resellers, reducing your internal costs. Although you pay the interest for the credit advanced to your resellers, it’s a small price to potentially enhance your distribution chain substantially.
For manufacturers and distributors, Inventory Financing can:
- Increase reseller and channel capacity
- Outsource collections and other activities
- Reduce Days Sales Outstanding
- Provide more predictable cash flow
- Increase reseller loyalty
Resellers
Benefits
If you’re a reseller, you’ve probably faced the challenge of insufficient working capital to pay your supplier bills before your own customers pay you. Inventory Financing offers relief from this working capital crunch by providing you a line of credit with over 100 suppliers whose products and services cover the gamut in technology and information technology.
These manufacturers and distributors pay the interest charges that would otherwise apply to your credit lines. As a result, you can receive up to 90 days worth of interest-free loans for acquiring product.
With all these zero-interest days, you get relief from the cash crunch and an overall expansion of business credit, potentially yielding significantly greater volumes and profits. Furthermore, you don’t need to settle your accounts payable with IBM Global Financing until after you’ve collected on your invoices with your own customers.
For resellers, Inventory Financing provides:
- Improved Days Payables Outstanding
- Increased credit capacity
- Online account management
- Flexible structures that match repayment terms to accounts receivable terms
- Accelerated cash flow