Inventory Capital Group
Financial Services - , ,
Inventory Capital Group Employees
Inventory Capital Group Details
ICG is a niche finance company that provides financing to growing small and middle-market companies. Our clients usually cannot obtain financing from traditional sources such as banks or asset based lenders because they are growing too fast, have not been in business long enough, or do not have sufficient assets to acquire funding from an asset-based financing source. In order to prudently finance in this challenging market, we use a proprietary financing technique called Business Process Financing that focuses on the purchase and sale of inventory. We are not a lender, but rather a reseller of goods. We fund inventory by purchasing either new inventory directly from your manufacturers, or existing inventory from your company that we then hold in our name. Typically, when you have a firm buyer, usually a customer with a credit card or a factorable account receivable, we sell this inventory back to you and collect the cash from a blocked bank account previously set up for this purpose. Our clients generally have high profit margins, quick inventory turn cycles, and many growth opportunities. As long as the client uses the financing for high-margin growth opportunities, the client is almost always better off using us to finance them rather than equity financing, despite the fact that we charge a premium for our financing. The trade-off is between paying us a percentage of your contribution margin today, and paying an equity partner forever.
