inventory financing

inventory financing definition - finance
  1. Financing provided by a bank or finance company that is secured by the inventory of the company receiving the financing. Also called wholesale financing. Inventory financing may be extended to companies to purchase raw materials and finished goods. Other names for inventory financing are floorplanning, wholesale financing, floorplan financing, and distribution financing.
  2. Financing provided by a company to a business customer who needs to pay for a purchase from the company providing the financing. Technology companies and telecom companies, whose orders often total millions of dollars, often provide financing to their customers.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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