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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

inventory financing  

Definition 1.

A loan made to a manufacturer using its inventory as collateral. Inventory financing is often used by manufacturers of consumer products, for whom inventory tends to form a significant percentage of assets.
 

Definition 2.

sed in the context of factoring and general finance to refer to loans to consumer product producers that use inventory as collateral. See also: Inventory loan.
 
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