A Pampa, TX owner can phone (806) 386-3412 or use the request form; the request then reaches funding partners, and each one decides on terms for itself.
Inventory financing turns a stock purchase into payments, with the goods as collateral. A partner may advance only part of the cost and may recount the stock during the term. Every figure in the worked cases is invented; partners set their own advance shares, rates and fees.
At a glance
- Retail employer establishments, Gray County, TX
80 (CBP 2023)
- Clothing and clothing accessories stores, Gray County, TX
13 employer establishments (CBP 2023)
- Specialty trade contractors, Gray County, TX
25 employer establishments (CBP 2023)
Inventory Financing Example: A Gray County, TX Contractor Stocking Pipe and Fittings
Invented case: a Gray County, TX contractor buys $18,735 of pipe, fittings and valves in one supplier order instead of picking up parts job by job. Financed over 10 months at an annual rate of 12.15%, the order costs $1,979.41 a month; the ten payments total $19,794.10, which leaves $1,059.10 as interest.
| Term | Monthly payment | Total of payments | Interest |
|---|---|---|---|
| 6 months | $3,234.08 | $19,404.48 | $669.48 |
| 10 months | $1,979.41 | $19,794.10 | $1,059.10 |
The shorter schedule asks for $1,254.67 more each month and saves $389.62 of interest. Either way the test is the same: the parts should go into billed jobs before the last payment, because stock still on the shelf at the end of the term has been paid for without earning anything back.
In Gray County, TX, specialty trade contractors (NAICS 238), the group that includes plumbing, electrical and roofing contractors, accounted for 25 of the 33 construction employer establishments in the 2023 County Business Patterns.
What Is Inventory Financing? A Pampa, TX Clothing Store Filling Its Racks
Inventory financing is funding for goods a business will sell or install, with those goods serving as the collateral. Because stock can lose value on the shelf, a partner may advance only a share of its cost and leave the rest to the business.
Invented case: a Pampa, TX clothing store orders $26,480 of denim, workwear and boots. A partner advancing 65% would put up $17,212.00, and the store would pay the other $9,268.00 from its own cash. Over 8 months at an annual rate of 13.05%, the financed part comes to $2,258.12 a month, $18,064.96 in all, of which $852.96 is interest.
- The supplier order or invoice, with quantities and cost
- How long earlier stock took to sell, shown in sales records
- Where the goods are kept and whether they are insured
- Any other lien already filed against the store's stock
A store like this one is small by the county's own numbers: of the 13 clothing and clothing accessories stores with paid staff that County Business Patterns counted in Gray County, TX for 2023 (NAICS 448), 7 had fewer than five employees.
Purchase Order Financing Example: Materials for a Signed Job at a Gray County, TX Contractor
Purchase order financing is narrower. Instead of funding stock in general, a funding source pays a supplier to fill one specific customer order and is paid back when that customer pays. It was built for goods resold unchanged, so whether a partner offers it for construction materials is that partner's call.
Invented case: a Gray County, TX contractor signs a job that needs $23,415 of materials, and the supplier wants payment before delivery. The funding source settles the supplier's invoice and, in this made-up case, charges 2.6% per 30-day stretch until the customer's payment lands. The customer pays 47 days later, which counts as 2 periods, so the fee comes to $1,217.58.
- The contractor shows the signed job and the supplier quote.
- The funding source reviews both and, if it agrees, pays the supplier directly.
- The materials arrive and the work is done and invoiced.
- The customer pays, possibly into an account the funding source controls.
- The fee comes off, and the rest of the payment goes to the contractor.
How Does Inventory Financing Work? A Gray County, TX Contractor's Stock as the Collateral
On an inventory line, the amount available can rise and fall with the stock. A partner may count only goods it accepts as saleable, multiply their cost by an advance share, and treat the result as the ceiling for that month. In the invented table below the share is 55%.
| Month | Stock on hand at cost | Amount available |
|---|---|---|
| Month 1 | $41,600 | $22,880.00 |
| Month 2 | $33,250 | $18,287.50 |
| Month 3 | $47,900 | $26,345.00 |
When jobs draw the shelves down in month 2, the amount available drops with them; restocking in month 3 lifts it again. A partner may ask for a monthly stock report or visit to check the count, and goods that are old, damaged or slow to move may count for less or not at all.
Inventory Financing Companies: What They May Ask a Gray County, TX Contractor About Its Stock
Robinstead Commercial Capital is not one of them and makes no loan itself. A request goes to funding partners, which can include banks, finance companies and funding sources that focus on stock, and each one reviews it under its own rules.
- What the stock is, and how long it sits before it goes into a job
- Whether any of it is already pledged to a supplier or another funding source
- How the goods are stored, counted and insured
- Which jobs or invoices will turn the stock back into cash
- How long the company has been in business, and what its deposits look like
Offers can differ on the advance share, the rate, fees for audits or renewals, and what happens to unsold goods when the term ends. Comparing two offers line by line on those points says more than the rate alone.
Two articles carry stock questions further for Pampa, TX owners: a bulk order an auto parts store carries for a business customer, and a sporting goods store choosing between net 60 terms and a lower price paid with the order.
By Robinstead Commercial Capital ยท Updated
