Inventory Financing

See: Factor.

Your 18 miles of denim cost a fortune. You know you can sell it. Huge demand through your network of websites, JeanJeanJeans.com and LittleJeanieLovedElton.com. But you can't afford to stock the denim on your own without getting funding for that inventory. So you see a bank that looks at your advanced orders, audits your history, looks at your website traffic conversion metrics, and then decides whether or not it'll loan you the money to buy the 18 miles or not.

If it does, it'll be expensive. There's a ton of risk to funding inventory. But if the bank charges you, say 12% interest, and you actually pay off all the $20 million they loaned you on money that cost them 2% to rent from The Fed, they'll have made 10% interest on $20 million, or a cool 2 meg...a transaction worth singing about.

"Hey, Little Jeanie, you got so much time...and I want you to be my acrobat..."