Inventory Loan: A secured short-term loan to purchase inventory. The three basic forms are a blanket inventory lien, a trust receipt, and field warehousing financing.

 

Related Words

Inventory Loan: A secured short-term loan to purchase inventory. The three basic forms are a blanket inventory lien, a trust receipt, and field warehousing financing.

Inventory Financing: Money borrowed on the basis of finished inventory. The loan is paid as inventory is sold.

Participation Loan: A large loan made by a group of lenders, that enables a borrower to obtain financing above the legal lending limit of an individual lender.

Periodic Inventory: A Periodic Inventory is one whose balance is updated on a periodic basis, ie. every week/month/year. See Inventory .

Periodic Inventory Method: A system of accounting for inventory in which cost of goods sold is determined and inventory is adjusted at the end of the accounting period, not when merchandise is purchased or sold.

Perpetual Inventory: Recordkeeping system in which book inventory is updated daily.

Parallel Loan: A process whereby two companies in different countries borrow each other's currency for a specific period of time, and repay the other's currency at an agreed maturity for the purpose of red . . . View Full Definition

Package Loan: A real estate loan used to finance the purchase of both real property and personal property, such as in the purchase of a new home that includes carpeting, window coverings and major appliances.

Nonrecourse Loans: Farmers or processors participating in government commodity programs may pledge certain stored commodities as collateral and obtain a loan from the CCC at a commodity-specific, per-unit loan . . . View Full Definition

Number Of Days Of Inventory On Hand: An alternative measure of how well inventory is being managed: computed by dividing 365 days by the inventory turnover ratio.