Stock Finance is useful where cyclical trade patterns cause peaks and troughs to cash-flow.
Stock Finance can help by buying Stock against the security of the clients Stock. They would typically offer a 75% Loan of the Book Value of Purchased Stock and take an agreed percentage of in-flows.
Stock Finance can also purchase Stock needed against Future Orders but not Fully Pre-Sold. They would Secure this against the companies Debtor Book until the Purchase and Costs price are covered.
Obviously there are some exceptions which would need some thought, such as Seasonal or Fashion related items.
It is a good Tool when the client has a Guaranteed Call-off system with insurable Clients.