In stock financing, the value of existing stocks is considered. The stocks are transferred to Swedbank Līzings against immediate payment.
Stock financing is a service that makes it possible to release the money frozen into the stock and to improve the cash flow, at the same time retaining the required stock level.
Finance is available for up to 90% of the value of the stock which is pledged in favour of Swedbank Līzings. The financed stock must be in the possession of an independent warehouse, and the financed goods must be insured. The stock, all or part of it, will be released from the warehouse when the finance is repaid.
Stock financing is used to finance goods in stock and/or individual import transactions up to 6 months.
Stock financing is usually opted for by retailers, wholesalers, producers and importers.
Advantages of stock financing:
- Higher finance amount available thanks to stock control
- Discounts available as larger quantities of goods can be purchased
- Increased competitiveness: goods delivered to customers in due time; the range of goods and services can be maintained and widened
- Current assets are available before the goods are actually sold
- Better purchasing power because delivery volumes can be increased