What the stock is worth as collateral is decided by the funding partners who receive the request through Fairport.
Inventory financing for Gaffney, SC and Cherokee County, SC businesses: how stock backs the funding, a worked example for a plant, how it differs from purchase order financing, and what to compare between providers.
At a glance
- Retail trade, ZIP 29340
51 employer establishments (ZBP 2023)
- Manufacturing, Cherokee County, SC
58 employer establishments (CBP 2023)
- Automotive repair and maintenance, ZIP 29340
7 employer establishments (ZBP 2023)
Inventory financing example: a Cherokee County, SC manufacturer stocking up
Illustration only, invented figures: a Cherokee County, SC fabricator lands a large order and needs $48,000 of steel and bar stock before it can start cutting. A partner advances 70% of the stock's cost, $33,600, and the plant covers the rest from its own cash. At an annual rate of 13% for 90 days, the interest on the advance comes to about $1,077.04, before any fees the offer lists.
The plant pays the advance back as the finished parts ship and the customer pays. If the customer pays late, the stock is already gone into finished goods, so the offer's terms on late payment and extensions matter as much as the rate.
What is inventory financing for Cherokee County, SC plants and machine shops?
Inventory financing is funding secured by the goods a business holds for production or sale. For a plant or machine shop, that can mean raw material, bar stock, castings and finished parts waiting to ship. Work in progress can be valued lower or left out, since a half-machined part is hard for anyone else to sell.
Machine shops in the county fall under fabricated metal product manufacturing (NAICS 332, which includes machine shops): 14 employer establishments in Cherokee County, SC in 2023 (County Business Patterns), inside a manufacturing sector of 58.
The idea reaches past plants. An auto repair shop's parts room, with tires, filters, brake pads and batteries, is inventory a partner can count. A restaurant's stock is a harder case: dry goods, paper and beverages keep, but fresh food spoils within days, so a partner may point a restaurant toward working capital instead.
Purchase order financing vs inventory financing for Gaffney, SC plants and machine shops
The two products answer different questions. Purchase order financing pays a supplier directly so a business can fill one specific customer order it could not otherwise afford to fill; the customer's purchase order is what backs it. Inventory financing pays for stock the business will hold and sell or use, and the stock itself is the collateral.
For a plant with a signed order from a large customer, either can come up. Fairport's requests cover inventory financing; whether a given partner also offers purchase order financing is a question for the first call, not a promise on this page.
How does inventory financing work for a Cherokee County, SC clothing store?
For a clothing store, the sequence runs like this:
- The store prices the stock it wants: a vendor order, a reorder of core sizes, or goods for a large work-uniform order
- It calls (864) 581-2210 or sends the request form, and the first call covers the stock, the vendor and the timing
- A funding partner can review sales history, current stock and the store's statements, then set an advance against the goods
- The partner pays the vendor or the store, and the stock arrives
- As the stock sells, the store pays the advance down on the schedule in the offer
Payroll weighs on stock decisions here, too: only 4 of Cherokee County, SC's 33 clothing and clothing accessories stores had fewer than five employees in 2023 (County Business Patterns, NAICS 448). A store with a floor team to pay can use stock funding to keep cash on hand for wages.
Choosing among inventory financing companies as a Cherokee County, SC clothing store
Providers of inventory financing range from banks with asset-based lending desks to specialized finance companies. A clothing store can line them up on the same points:
- The share of stock cost the provider will advance, and how it values older or slow-moving goods
- Every fee: setup, monitoring, audit or field-exam charges, and any minimum interest
- Reporting: how often stock counts or sales reports are required
- What happens when stock sells slower than planned, and whether the term can be extended
- Total cost in dollars for the expected life of the advance
ZIP 29340 reaches beyond the Gaffney city limits, and ZIP Code Business Patterns placed 51 retail trade establishments at addresses in it in 2023. Other products are compared on the business loans overview.
By Fairport Business Capital · Updated