What is inventory-based financing and how does it work? Inventory is often seen as a cost center, tying up cash that could otherwise support growth.Inventory-based financing changes that perspective. It enables companies to convert part of their stock into immediate liquidity, without adding debt or restrictive guarantees. This article explains how the model works in practice and why it can make a real difference for many businesses. In summary: 5 key takeaways Access up to 80% of your inventory’s value in immediate cash, with no loans or personal guarantees.  Operate almost off-balance sheet through a temporary inventory sale (with a repurchase agreement), which is not classified as a credit.  Keep full control of your operations: your stock remains on-site and continues to flow normally.  Receive funds in about 60 days, faster than a traditional bank loan.  Use a flexible, renewable solution to finance seasonal peaks, expansion projects or working capital need. Discover our tailor- made approach for your business. 1. What exactly is inventory-based financing? Inventory-based financing is an innovative cash flow solution designed for SMEs and mid-sized companies with significant stock levels.Instead of taking out a traditional bank loan that often requires personal guarantees or real estate collateral, the company temporarily transfers ownership of part of its inventory to a financing partner such as Finrack. In exchange, it immediately receives a percentage of the stock’s value. Legally, this is not a loan but a repurchase agreement. The company retains full use of its goods and can continue selling them as usual, with the option to repurchase them gradually or in full at the end of the period. This model helps businesses unlock liquidity tied up in inventory, without increasing their debt or administrative burden. 2. How does the process work? The financing of all or part of a company’s