Back to Blog Feed

We will help you grow your small business.

Learn More

Join our Newsletter for great tips and updates.

The need to manage inventory is widely viewed as simply an organizational effort; a way to keep track of sales. But as any small business owner will tell you, effective inventory management can position you to increase revenue, stabilize your budget, and improve customer service. These benefits, however, are only reserved for companies that know how to conquer the many obstacles preventing them from putting the right products on their shelves at the right time.

This problem is especially prevalent today, when brick-and-mortar stores are desperately trying to meet sudden changes in demand and speed up operations. But with an alternative business financing company like United Capital Source by your side, you can get rid of inventory or secure more of it without hurting cash flow.

Here are 3 inventory challenges you can solve with small business loans:

1. Opening/Renovating

Opening or renovating a location comes with an array of responsibilities that must be coordinated in order for the store to be ready for business on time. You’ve got to manage inventory deliveries from multiple vendors, juggle construction projects or repairs, find and train new team members, and, of course, prepare for unexpected mishaps. It’s not uncommon, for example, to be stuck with extra inventory that can’t fit on display shelves or anywhere for that matter because construction is not complete.

Deadlines play a huge role in these situations, and United Capital Source can supply the extra funding you need to order inventory at by a specific date without compromising your ability to pay for your other expenses. We offer working capital loans, merchant cash advances, and accounts receivable factoring services tailored for businesses faced with strict schedules or accounts payable pressures. Our job is to work around, not against, your circumstances, so we could create a business funding program that allows you to purchase inventory along with new furniture at the same time.

Your larger payments would not have to be made as your new or newly renovated location is first finding its legs, or when you must finally pay the construction or maintenance company for their work. We can even adjust your terms in the event of the previous scenario in which you might have to pay a storage company to hold inventory with no place to go.

2. Seasonal Merchandise

Seasonality poses a number of predicaments for stores that conduct the majority of their annual sales in the summer or winter. Such businesses must prepare for the busy season by ordering inventory in bulk, which wouldn’t be so difficult if it didn’t have to be done during the slow season, when sales are down. If your busy season is the holidays, then you are likely running marketing campaigns to promote popular products. This is very similar to the aforementioned section except that instead of renovations, you are coordinating availability with the amount of time it takes for promotions to take effect.

Credit card processing loans (merchant cash advance) were made for seasonal businesses. Funding can be distributed in a matter of days, even if you have bad credit. Your lump sum is based on how many sales you are projected to make, and payments are directly tied to sales. At United Capital Source, our years of experience working with seasonal businesses has taught us that inventory needs are subject to change in the middle of the already-chaotic season.

3. Over-managing

The amount of emphasis placed on inventory management can you make you forget that the primary purpose of this tactic is to move products around as little as possible. You want to have a plan for storing and shifting inventory so you can focus on maximizing revenue.

Some clients of United Capital Source take out working capital loans, merchant cash advances or accounts receivable factoring services so they can purchase inventory for multiple seasons at once, even though they might not touch certain items for months. Others simply wish to make inventory payments well before the due date and receive discounts as a reward. Either way, our inventory-geared small business loans will ultimately reduce your labor costs, allowing you to fix small problems when before they become big problems soon enough.

It Doesn’t Have To Be This Hard

With so many speed bumps to watch out for, it’s extremely advantageous to be able to get the working capital you need without any back-and-forth hassle. Whether it’s asking for a first or a second round of funding, just one phone call or email is all it takes to get an answer from UCS. We can help you make an inventory plan for the months to follow, and provide additional rounds of funding at a moment’s notice should the same speed bump arise at the same time next year. At UCS, we know how vital it is to maintain a strong relationship with your inventory supplier. By the time your debt is paid back in full, you’ll be left with a budget capable of paying your suppliers on time for the rest of the year!


We will help you grow
your small business.

Get Started

Leave a Reply