The amount you can receive typically depends on the value of the inventory and the lender’s advance rate, often ranging between 50% to 80% of the inventory’s appraised value. Lenders assess inventory quality, turnover rate, and market demand to determine the loan amount.

If the inventory doesn’t sell, the loan still needs to be repaid. Since the inventory serves as collateral, the lender has the right to seize and liquidate the inventory to recover the loan amount if repayment issues arise. Haro assists in structuring terms that align with your business cycle to minimize such risks.

Inventory Financing costs typically include an interest rate based on the loan amount and, in some cases, additional fees depending on loan terms and structure. Rates often vary with risk, creditworthiness, and market conditions, and Haro can work with you to ensure the financing structure aligns with your goals.