https://youtu.be/atcOJFxQDpg

Secured transaction

Short-term bank financing is a means by which a company finances the purchase of inventory. Financing inventory has proven to be a strategic method for companies to gain access to short-term funds, create stability in the timing of asset purchases, and contribute to the company's overall profitability.

Share an example of a financing need for an intangible asset and physical asset. Compare how a financing institution could secure its interest in a company's physical asset versus an intangible asset.

• What methodology do you suggest that a lender take to perfect its interest in a company's inventory?
• What considerations should a company make to ensure a proper balance between access to debt and meeting profitability goals?