| Inventory based finance facilities are among
the small business finance options to emerge from an Australian research
project commissioned by Scottish Pacific Business Finance.
As part of its commitment to small business, Scottish Pacific Business Finance commissioned business advisors, KPMG, to examine innovative financing options and small business attitudes towards such ideas. The survey found that the biggest problems facing many small businesses are cash flow and logistics, and that these problems are often exacerbated by an inability to access finance because their only assets are debtors and inventory. The survey found that activities like warehousing and distribution are frustrating for small business operators because they distract them from their main focus on marketing and selling their product or service. One potential solution that emerged from the research project was a combination of cashflow finance and inventory management. |
“The survey found that the market is interested
in the concept of borrowing money against the
value of inventory while at the same time outsourcing warehousing and distribution to a specialist third party,” said Scottish Pacific Business Finance New Zealand Director, Dave Cooper. “That way, small business achieves two objectives – it gets finance and solves the management headache caused by logistics.” Dave said businesses with experience of cashflow financing were more open to innovative business solutions, particularly the notion of outsourcing inventory management.  |