How does it work?

Our process involves assessing the potential liquidation value of your equipment or inventory and assigning it a monetary value. Like how a home equity line of credit operates, you have the flexibility to withdraw funds as needed and are only required to make monthly interest payments. The amount we advance will be the lesser of the item’s cost or its Net Orderly Liquidation Value.

What is the cost?

The cost of asset-based lending like this varies with each transaction.

Factors influencing the monthly cost include:

• The ease of liquidating the inventory
• The inventory’s location (whether centralized or dispersed)
• The perishability of the inventory or its susceptibility to becoming outdated

Inventory financing serves as an effective method to leverage your existing assets for further acquisitions. This type of financing is distinct from accounts receivable or purchase order financing, offering a traditional line of credit with interest-only payments on the drawn amount until the loan matures.

How do I get started?

To begin, the following documents must be submitted for evaluation:

• A fully completed and signed K2 Capital application.
• Up-to-date financial statements, including accounts receivable aging and accounts payables.
• A detailed inventory list, including the locations of the items.

Upon review and assessment of these documents, K2 Capital will provide a term sheet and a list of steps to close the deal.