About Commercial Inventory Finance

Who are Commercial Inventory Finance?

Commercial Inventory Finance (CIF) is a medium sized, Australian and privately owned finance arm of Little Lease Company Pty Ltd. We are based in Brisbane and Sydney although we service the entire country from within these offices and have been trading since 1998. By dealing with a specialised and professional finance company such as ours, you will not be lost in the system as you will be assigned with your own personal account manager who will be always available to you if you need to discuss any aspect of your business and your dealings with us.

What is inventory finance?

Inventory finance is designed to allow businesses to grow and increase profits by using external borrowings. In these instances, this finance allows them to meet their customers’ demands by having a reasonable level of stock at all times without putting stress on their own cash flow or worse still, not having the available cash, hence losing sales. This also allows the business to grow at a faster rate than previously.

Who would require this type of finance?

This type of finance is ideal for small to medium size businesses in the retail, wholesale, manufacturing and/or hire sectors that are looking at capturing potential lost sales and/or are looking to expand their business much faster than if they used their own cash flow. In most cases, it can take a business many years to reach a desired level of turnover however with the help of inventory finance, you can save time and increase profits much sooner than self-funding.

CIF TURNOVER/PAYMENT CALCULATOR

Step 1 : Enter the period in months that you expect to turn your stock over (between 1 & 6 months).
Step 2 : Enter the amount you wish to borrow to purchase this stock.
Step 3 : Enter the profit margin in % you expect to make when you sell this stock.

After entering these variables, the result in Term 1 will give you an indication of what your profit will be after you sell your stock in the initial turnover period and after interest, and the loan is repaid at the end of this nominated term.

The other terms which are below Term 1 takes into account what your future profit will be if you didn’t repay this loan but instead re-invested your initial capital and profits for a full 12 months. From this, you can see how your sales and profit multiply yet your loan amount and interest charges remain the same.

No matter whether you are after short term or long term finance, this will help you understand that this finance option is suitable for both and can help you enjoy higher sales and profits.