Inventory Financing

Factoring: sometimes used as a synonym for overadvances in Factoring, where loans in excess of accounts receivable are made against inventory in anticipation of future sales.

Finance companies: financing by a bank or sales finance company of the inventory of a dealer in consumer or capital goods. Such loans, also called wholesale financing or floorplanning, are secured by the inventory and are usually made as part of a relationship in which retail installment paper generated by sales to the public is also financed by the lender. See also Finance Company.