In today’s uncertain economic climate, businesses across the materials handling sector are facing increasing pressure to manage cash flow efficiently while keeping pace with evolving customer demands. Rising interest rates, global supply chain fluctuations, and ongoing inflation have all contributed to heightened financial unpredictability. Now more than ever, having access to a flexible, reliable inventory finance solution - and the right partner to provide it - is a strategic advantage.
What is Inventory Finance?
Also known as “floor planning” or “wholesale finance,” inventory finance allows dealers to purchase inventory with the help of a line of credit provided by a financial institution. This removes the burden of upfront payments, giving dealers more time to sell the equipment before paying for it. For manufacturers and distributors, it’s a way to offer extended payment terms through a finance partner, increasing dealer loyalty and sales volume.
Why Inventory Finance Matters in 2025
With tighter capital markets and increased cost control measures in play, businesses need more than just capital - they need confidence and agility. A dedicated inventory finance program can:
- Improve liquidity and purchasing power: A credit facility allows dealers to buy more equipment, keep their lots well-stocked, and respond quickly to customer demand without straining their cash flow.
- Support predictable cash flow: Flexible repayment terms make it easier to manage operating expenses, especially when revenue timing is unpredictable.
- Enable strategic inventory decisions: In a market where demand can shift quickly, being able to finance both traditional assets and advanced technologies, like AGVs and robotics, means dealers can stay ahead of the curve.
How It Works with DLL
DLL partners with manufacturers, distributors, and dealers to facilitate equipment purchases through a structured inventory finance program. When a dealer places an order, DLL pays the manufacturer directly. The dealer then repays DLL either on a scheduled date or using a pay-as-sold model - whichever better aligns with their sales cycle.
This model supports faster inventory turnover, extended interest-free periods, and greater operational control - all of which are essential in a volatile economy.
Strategic Benefits for Manufacturers and Distributors
- Faster revenue recognition: Get paid up front and let DLL manage dealer repayment.
- Stronger dealer relationships: Offer value-added financing options to help dealers succeed long term.
- Reduced credit risk: DLL assumes the risk and handles the billing, allowing you to focus on growth.
Strategic Benefits for Dealers
- Higher purchasing power: Access to a line of credit means more inventory at your fingertips.
- Better cash flow: Align payments when products sell.
- Flexible payment terms: More favorable than those typically offered by traditional banks.
Choosing the Right Partner
In 2025, having a finance partner that’s both experienced and forward-thinking is critical. Key things to look for include:
- Deep industry knowledge of the materials handling sector.
- Exceptional service and easy-to-use tools, such as 24/7 online portals with real-time reporting.
- Customized solutions built around your business cycles and goals.
- A long-term approach to partnership, built on trust, transparency, and results.
Proven Satisfaction
More than 90% of DLL’s inventory finance dealers in the construction, transportation, and industrial sectors reported satisfaction with their overall experience in 2024. With more than 50 years of industry experience, DLL continues to deliver flexible, responsive, and innovative financial solutions that help businesses thrive - even in challenging times.
All financing subject to credit review and approval and other terms and conditions. All financing is in DLL’s sole discretion.