We can arrange stock finance while you are using our storage or order fulfilment services.
This enables you to free up cash before you can find an end buyer for your stock and may be a cheaper alternative than arranging a loan or borrowing on a credit card. Even if you don’t need finance, you might be able to find a better use for your cash tied up in stock waiting to be sold.
The process is very simple and does not involve loans or third-party guarantees. It works like this:
- We purchase the stock you have in store with us for 100% of its value (excl. VAT).
- We pay you 50% of the purchase price immediately and retain 50% as deposit.
- As and when you find an end buyer, we sell the stock back to you for what we paid for it plus a 10% stock facility fee.
- At the end of 12 months you would be required to buy any remaining stock back from us plus a 10% stock facility fee, but the process can be started again from scratch.
For example, we buy your stock for £10,000 and immediately pay you £5,000. When you come to sell it on to an end buyer, you buy the stock back from us for £10,500 but only pay us £5,500 (we already hold £5,000 from the initial purchase as a deposit).
You must already be trading and be able to back this up with six months’ sales figures. We will need to know the average retail sale price achieved, quantities sold and the type of customer you are selling to (end user, third party distributor or retailer). It goes without saying that all products must comply with relevant UK legislation and be within the scope of what we are prepared store in our premises.
Stock purchase is only available to customers who will be storing with us or using us to fulfil their sales orders. In addition, the total value of stock we can purchase is dependent upon how much storage space you are occupying. So, for example, if you were occupying storage space of 34 cubic metres (1280 cubic feet) which is about the size of an average garage, then we could purchase up to £20,000 of stock and give you a down payment of £10,000. This is the maximum we will purchase.
You can still take advantage of our stock purchase offer even if you don’t want to use us to fulfil your sales orders. We have plenty of customers who just rent storage space from us and deal with the order fulfilment side of things themselves. They come to us because we are always on hand to take delivery of their stock (we have fork-lifts, pallet trucks, etc., for large deliveries) and put it into storage for them. We check the stock for damage, make sure the quantity is correct and log it onto our stock control system. As and when the customer makes sales, the items are left with us for handing over to their courier. This means the customer doesn’t have to wait around for deliveries or collections.
Stock purchases are subject to terms and conditions.
Please get in touch if you have a specific proposal you want to discuss.