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.