Rushcrest Commercial Capital in Kankakee, Illinois explains inventory financing: money for goods bought ahead of sales, secured by those goods, for machine shops, repair shops, contractors and retailers, with a labeled example and the records a funding partner may ask for.
At a glance
- Retail trade, Kankakee County, IL
Retail stores, Kankakee County, IL: 348 employer establishments, $179.5 million in payroll (CBP 2023)
- Wholesale trade, Kankakee County, IL
Wholesale trade, Kankakee County, IL: 108 employer establishments, $161.4 million in payroll (CBP 2023)
- Building material and garden equipment dealers, Kankakee County, IL
Building material and garden equipment and supplies dealers, Kankakee County, IL: 28 employer establishments (CBP 2023)
How Inventory Financing Works? What It Means for a Kankakee County, IL Machine Shop
Inventory financing lends against goods a business holds or is about to buy. For a machine shop that means bar stock, plate, castings and purchased parts bought for a customer's order. The lender advances a share of the inventory's value, usually less than its full cost, and the shop pays down the balance as finished parts ship and invoices are paid. A purchase order from a known customer strengthens the request, because it shows where the stock is going.
Kankakee County, IL had 28 fabricated metal product manufacturers in 2023, the NAICS group that includes machine shops (County Business Patterns, 2023). See the machine shop loans page.
Inventory Financing Line of Credit: Ice Machines and Hood Repairs
An inventory line of credit is a revolving limit tied to stock on hand: the more eligible inventory, the more the business can draw. It finances goods, not equipment. A restaurant could use one for food and bar stock but would price a new ice machine or a hood repair separately, as equipment financing or a short loan, since a kitchen repair has no resale value as inventory.
Restaurants and other eating places in Kankakee County, IL numbered 176 in 2023 (County Business Patterns, 2023).
Inventory Loans Small Business: Two-Post Lifts and Parts Inventory
An auto repair shop carries filters, brakes, belts, fluids and tires so that jobs do not wait on deliveries. Inventory financing can pay for that parts room, and the shop pays it down as the parts go into repair orders. A two-post lift is not inventory; it is equipment, financed on its own terms.
Kankakee County, IL had 76 automotive repair and maintenance employers in 2023, 33 of them with a ZIP 60901 address (ZIP Business Patterns, 2023).
Inventory Funding for Builders: Skid Steers and Retainage Gaps
A builder's inventory is lumber, windows, roofing and other materials staged for jobs. Inventory funding can carry those purchases until the draws come in, and it matters most when retainage holds back part of each payment until the job closes. Equipment like a skid steer belongs in a separate equipment request.
Kankakee County, IL counted 50 building construction employers and 136 specialty trade contractors in 2023 (County Business Patterns, 2023).
Inventory Financing for Small Business: What Kankakee, IL Retailers Should Know
For a retailer, inventory financing pays for seasonal stock or a larger order at a better unit price. The lender looks at the pace at which the stock turns, what share of it is current and what would be left if it did not sell. Slow-moving goods lower the advance. Compare the financing cost with the margin on the goods; financing stock that sells at a thin markup can erase the profit.
Illustration only, invented figures: a retailer financing $40,000 of stock at a monthly fee of 1.5% pays about $600 a month while the full balance is out; if half sells in the first month and that half is paid down, the next month's fee falls to about $300.
Choosing Between Inventory Financing and Supply Chain Financing at a Kankakee, IL Contractor
With inventory financing, the business holding the goods takes on the debt. Supply chain financing is arranged around the supplier: a finance company pays the supplier early and the buyer pays later, on terms tied to the buyer's credit. A contractor buying from a large distributor may be offered the second through the distributor; a contractor stocking its own yard would use the first.
Kankakee County, IL had 28 building material and garden equipment and supplies dealers in 2023 (County Business Patterns, 2023).
Records for an inventory financing request in Kankakee, IL
- A current inventory list with costs, and an aging of slow items.
- Purchase orders or supplier quotes for the stock being bought.
- Recent business bank statements and a tax return.
- Sales by month, to show the pace of stock turns.
A partner decides which of these it needs. The request steps show when records come in.
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