Definition of inventory financing

1. synonym for overadvances in factoring, where loans in excess of accounts receivable are made against inventory in anticipation of future sales.
2. financing by a bank or sales finance company of the inventory of a dealer in consumer or capital goods. Such loans, also called
3. wholesale financing or floor planning, are secured by the inventory.

Factoring: sometimes used as a synonym for overadvances in factoring, where loans in excess of accounts receivable are made against inventory in anticipation of future sales.
Finance companies: financing by a bank or sales finance company of the inventory of a dealer in consumer or capital goods. Such loans, also called wholesale financing or floorplanning, are secured by the inventory and are usually made as part of a relationship in which retail installment paper generated by sales to the public is also financed by the lender.See also finance company.