Running a successful decorated apparel business is not easy. Every day, you rely on dependable equipment and stocked materials – both of which demand significant capital. When cash flow is tight, how do you keep production on schedule to meet customer orders?
Financing is a fast and effective way to overcome this hurdle. But with options like inventory financing and equipment financing available, how do you choose the right one for your situation?
Here at Beacon Funding, we get asked “what is the difference between inventory financing and equipment financing?” While they may seem similar, the funds are required to be used for very different purposes.
In this article, we will discuss the key distinctions between inventory financing and equipment financing. Once you understand the differences, you willl be able to apply for the right financial solution.
Ready to boost your inventory with essential supplies? Stock up your shop by applying for inventory financing today!
In this article…
- What is Inventory Financing?
- How Does Inventory Financing Work?
- What is Equipment Financing?
- Why Use Equipment Financing?
- Key Differences Between Inventory Financing and Equipment Financing
- How to Apply for Inventory Financing with Beacon Funding
What is Inventory Financing?
Inventory financing is designed to help provide decorated apparel businesses with the funds they need to purchase materials. Instead of using cash or a credit card to buy essential supplies, businesses use inventory financing to purchase bulk products. This allows businesses to take advantage of the significant discounts offered by wholesalers.
Why Use Inventory Financing Instead of a Credit Card?
- Lower Interest Rates: Inventory financing generally comes with lower interest rates compared to credit cards and working capital loans, which can help reduce overall borrowing costs.
- No Compound Interest: Unlike credit cards, which have compounding monthly interest, inventory financing has a fixed interest rate.
What Products Can You Purchase Using Inventory Financing?
A decorated apparel business can finance a variety of consumables, including (but not limited to) ink, thread, emulsions, chemicals, accessories, and blank garments.
What’s the Benefit of Financing My Inventory?
Imagine being able to expand your shop’s inventory without worrying about depleting your savings!
Instead of spending your hard-earned cash to buy essential supplies, Beacon Funding's inventory financing program empowers you to get those materials without the financial strain. That way, you can conserve your cash for other areas of your busy business and face them head-on.
With Beacon Funding’s Inventory Financing Program, You Can:
- Preserve working capital: Boost your inventory without draining your savings.
- Grow product lines: Add new products and diversify your offerings.
- Buy inventory in bulk at a discount: Save money on bulk inventory when prices are low.
- Get ready for busy seasons: Stock up in advance to meet high demand.
- Quickly Access Funds: Inventory financing can be approved and disbursed quickly, often within 24 hours.
START THE FINANCING PROCESS
How Does Inventory Financing Work?
In just three steps, you can get on track towards getting the materials you need.
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| Step 1: Apply with Beacon Funding: Complete a quick and easy form. |
Step 2: Underwriting Review: A financing consultant works with underwriting to secure approval. |
Step 3: Beacon Funding Pays Vendor: Beacon Funding pays the vendor, and you receive your supplies and start making monthly payments. |
Apply today and take advantage of a traditional 12 to 36-month structure!
STOCK UP YOUR SHOP
What is Equipment Financing?
Equipment financing provides decorated apparel businesses with the funds to acquire essential machinery and equipment. Through lease-to-own or financing programs, businesses can enable growth while maintaining liquidity. With Beacon Funding, you can lease or finance embroidery machines and screen printing equipment for a low monthly payment.
Why Use Equipment Financing?
Rather than spend your savings on buying equipment, you can spread out the cost into low monthly payments, conserve your cashflow, and deduct 100% of the equipment’s cost on your taxes the first year its put into use.
Additionally, the equipment you finance can enhance your production efficiency, leading to increased profitability.
This means you can:
- Acquire essential business equipment without draining your savings.
- Maintain liquidity by financing 100% of the equipment.
- Enjoy fixed monthly payments that fit into your budget.
- Take advantage of tax incentives under Section 179.
Key Differences Between Inventory and Equipment Financing
Understanding the key differences between inventory financing and equipment financing can help you make smart business decisions. Below is a comparison:
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Inventory Financing
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Equipment Financing
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Purpose
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Quickly acquire supplies such as ink, thread, chemicals, or blank garments without utilizing your cash or credit. |
Obtain embroidery or screen printing equipment fast without utilizing your cash. |
Primary Benefit
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Ensure your supply chain stays uninterrupted. |
Use equipment to generate revenue. |
Payment Options
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Low monthly payments.
Shorter repayment terms from 12 to 36 months. |
Low monthly payments.
Longer repayment terms from 26 to 84 months. |
Main Advantage
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Maintain supply levels without depleting savings or using credit. |
Purchase essential equipment with manageable monthly payments. |
How to Apply for Inventory Financing with Beacon Funding
Applying for inventory financing at Beacon Funding is fast and easy. In just a few minutes, you can get started to quickly boost your inventory and conserve more cash for your business.
Simply apply for inventory financing by completing a quick credit application. Once we receive your application, your dedicated financing consultant will submit your application for approval. If you’re approved, Beacon Funding will pay the vendor for your supplies. You will receive your items and begin monthly payments.
GET STARTED NOW
*Inventory financing is for specific for consumables in the decorated apparel industry, but not limited to ink, thread, emulsions, chemicals, accessories, and blank garments. All deals subject to Beacon Funding credit review and approval. Increased payment, down payment, and/or security deposit may be required depending on time in business, credit quality, and the type of equipment.