E-commerce · Deal Structure
Inventory financing
Published · Reviewed by The Diligence Standard Team · Updated
Borrowing availability depends on eligible inventory, title, age, location and lender advance rules.
Records to reconcile
- Inventory eligibility schedule
- Borrowing-base terms
- Aging and title evidence
Warning signal
Purchase-price inventory is assumed fully financeable.
Transaction impact
Buyer equity and liquidity needs can rise at closing.
Response
Model eligible collateral separately from negotiated inventory value.