Stock finance
Author
Discussion

Wilmslowboy

Original Poster:

4,770 posts

236 months

Thursday 20th August 2020
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Looking to buy a business and need some info on rolling stock finance facilty - Thanks

It currently has £250k of inventory (luxury home consumer goods), retail value is around £380k ex VAT

Anyone know what Loan to Value, (of cost value) could be achieved, as well as likely interest rate.

Pot Bellied Fool

2,264 posts

267 months

Friday 21st August 2020
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Try having a chat with Helen at https://www.go-factor.co.uk/ - they do more than just invoice factoring and she's a fund of useful info. I'm sure she'll point you in the right direction even if she can't help herself.

The Moose

23,683 posts

239 months

Friday 21st August 2020
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How quick does the stock turn over and on what terms (I.e. direct to consumer where paid immediately or to distributors on 90 day terms)?

Wilmslowboy

Original Poster:

4,770 posts

236 months

Friday 21st August 2020
quotequote all
The Moose said:
How quick does the stock turn over and on what terms (I.e. direct to consumer where paid immediately or to distributors on 90 day terms)?
£200k is about 6 months of stock (Very seasonal, and long lead times)

90% of product is bought on credit cards (So no payment terms offered)

Al Gorithum

5,293 posts

238 months

Saturday 22nd August 2020
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In my experience it's normally 30-50% of asset value, depending on how easy/difficult the assets are to dispose of if needed.

DjSki

1,331 posts

225 months

Sunday 23rd August 2020
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Funders don't love stock finance and might like it less now, you'll get about 30% of cost, sale price not that relevant to them. Asset finance usually 2.5-4%.

fellatthefirst

620 posts

185 months

Tuesday 25th August 2020
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In my experience the value of stock is generally looked upon as 10% of cost or less. When it comes to liquidation it is certainly those sort of numbers and that's how any finance company will view it (what could they get back if it all went Pete Tong).