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Home > Business Finance > Distribution Finance : Inventory Financing
Inventory Financing
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• Inventory Financing
> Business Revolving Charge Accounts
> Invoice Net Pay Accounts

Overview		 Overview
Originally developed by GE to help retailers stock more GE appliances, inventory financing has evolved into a flexible set of programs designed for different industries with different product distribution challenges.

Inventory finance programs are popular in many industries, such as appliance and consumer electronics, where resellers need to stock extensive and/ or expensive inventory.

Recently, new industries like replacement tires have discovered the benefits of inventory financing, allowing the manufacturers and distributors who introduce these programs a significant competitive advantage.

GE Distribution Finance is a leader and innovator in inventory financing. With 70 years of experience, we can strengthen an existing program or help a manufacturer or distributor develop a new one.
Types of Programs and Terms
> Pay As Sold
  • Interest free financing of products while in inventory
  • Payment due upon sale of product
  • Interest free terms vary - typically 30 or 60 Days
> Scheduled Repayment
  • Similar to Pay As Sold but, reseller repays GE Distribution Finance on a scheduled basis generally timed to the anticipated resale of the product
> Extended Terms
  • Extends the reseller’s payment to GE Distribution Finance, giving them more time to resell the product; typically used to finance inventory purchases during slow sales periods
> "Quick Ship" Programs
  • Simple one page customer repayment agreement
  • Immediate first order shipment up to $25M with approval
  • No UCC filings or financial statements required
  • Credit Lines available up to $75M
> Major Account Programs
  • Purchase Order financing available to credit worthy customers
  • Recourse or non-recourse programs
How Inventory Financing Works:
> GE Distribution Finance establishes a relationship with a manufacturer or distributor (including signing a repurchase agreement) while providing a line of credit to the manufacturer’s or distributor’s customers (resellers) who are the ultimate sellers of the product.
> Upon receiving an order from a participating reseller, the manufacturer or distributor will contact GE Distribution Finance to obtain approval for the order based on the reseller’s line of credit.
> Once the product is delivered to the reseller, the manufacturer or distributor sends their invoice to GE Distribution Finance for immediate payment while the reseller pays GE Distribution Finance following the re-sale of the product or on a scheduled basis
> Manufacturers or distributors can adjust the terms of the program to help introduce new products or stimulate sales during specific times to even out production runs or “load” dealers before important selling periods
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