Pre season inventory purchases at lower prices with guaranteed availability are one of the highest return working capital uses available to product based businesses.

Pre-season inventory purchases at discount pricing represent one of the highest return working capital uses available to product based businesses, and this guide explains exactly how to structure and time this specific opportunity for maximum benefit.

Pre Season Inventory Funding the Return Calculation

Pre-season inventory funding is one of the highest return working capital deployments available to product based businesses because pre-season purchases at supplier discount pricing capture margin that peak season pricing would not provide. A retailer purchasing holiday season inventory in September at a 15 percent supplier discount captures $6,000 in immediate margin improvement on a $40,000 inventory purchase compared to purchasing the same inventory in November at full price. Additional context on this topic is available in coverage of unsecured business loans top …