The amount that can be obtained on an inventory loan depends on both the marketability and perishability of the items in the inventory.

Question

Quizplus · Accepted Answer

The marketability and perishability of the items in the inventory are important factors in determining the amount that can be obtained on an inventory loan. Items that are in high demand and have a low chance of spoiling or becoming obsolete are typically valued higher and can be used to secure a larger loan amount. On the other hand, items that are difficult to sell or have a short shelf life may result in a lower loan amount.

The Amount That Can Be Obtained on an Inventory Loan