Financing Stock / Growth.

[Golfman]

Does anyone get involved in Stock Finance or the like, or can make any suggestions?

I have never considered this before as our growth has been fairly steady but due to potential rapid expansion next year we will need to hold a lot more stock in the UK and our new outlet in USA than we ever have before.

For example if we need to keep an extra £300k worth of physical stock that involves payment for manufacturing up front, around 2 months lead times and other such issues before we can even consider selling the goods, what’s the best way to go about it?

Thanks.

[ginettag27]

I have no idea about this (!) but surely the best way is to steadily increase the stock you have and see if it shifts, I guess it depends on the shelf life of your product, i.e. can it go out of date/season? I guess it's worth taking a measured risk, try writing down all the risks and positives and see what it looks like in black and white.

I know one firm that built some products for stock and sold them immediately, it can work that way, of course on the other hand they could have been sitting around for some time after being finished..