How to Get a Warehouse Line of Credit

Are you a small business owner looking to expand your operations? Are you struggling to secure the funds you need to grow your inventory and meet customer demands? If so, a warehouse line of credit from Customers Bank could be the solution you’ve been searching for. Let’s explore warehouse lines of credit and how you can get one.

Customers Bank is a nationally recognized warehouse lender that offers a diverse array of credit facilities ranging from $5 million to $300 million. In this article, we help you unlock the potential of this game-changing financing solution.

What is a Warehouse Line of Credit?

A warehouse line of credit is a specialized loan that allows you to borrow money against the value of your inventory. Unlike traditional bank loans that require extensive paperwork and a lengthy approval process, a warehouse line of credit provides quick and flexible financing options.

This type of credit is often used by retailers, wholesalers, and manufacturers who need a constant supply of inventory to meet customer demands. By leveraging the value of your inventory, you can access the funds you need to purchase more inventory, invest in new equipment, expand your facilities, or hire additional staff without tying up your capital.

Benefits of a Warehouse Line of Credit

The primary advantages of a warehouse line of credit include the following:

• Obtain funding quickly and easily – Unlike traditional loans that may take weeks or months to secure, a warehouse line of credit can be approved and funded in a few days.
• Flexibility as to how and when you use the funds – Once you have been approved for a line of credit, you can draw funds as needed, up to your credit limit. This means you only pay interest on the amount you borrow, not the total credit limit.
• Helps you build a strong credit history – By responsibly borrowing and repaying the funds, you demonstrate to lenders that you are a reliable borrower. This can improve your credit score and make it easier for you to access other types of financing in the future.

Eligibility Criteria for a Warehouse Line of Credit

To obtain a warehouse line of credit, you must meet the specific requirements set by the lender you select. First, lenders will typically require you to have a solid credit history. This means having a good credit score and a track record of repaying your debts in a timely manner.

Lenders will also want to see proof of inventory value. This may involve providing detailed inventory reports, including the value of your current inventory, the turnover rate, and any changes you anticipate in the inventory levels. Lenders may also ask for financial statements, tax returns, and other documents demonstrating your financial position and ability to repay the loan.

You should also expect lenders to evaluate your business’s overall financial health and stability. This may include reviewing your cash flow, profitability, and debt-to-equity ratio. They want to ensure that you can repay the loan and that your business is not at risk of insolvency.

Conclusion

Customers Bank offers diverse loan programs to fit your changing needs, including various niche products. Securing a warehouse line of credit can be a game-changer for small businesses looking to expand their operations. Our knowledgeable lenders will show you how to get this type of financing and unlock the funding you need to fuel your business’s growth. Give us a call today.