The Corner Store is a small-sized,general store which stocks a minimal level of basic supplies and offers gasoline to a rural community.Which one of the following types of credit is probably best-suited for financing this store's inventory?

Question

Quizplus · Accepted Answer

Blanket inventory lien is the type of credit that is best-suited for financing this store's inventory. This is because it allows the lender to take a security interest in all of the store's inventory, which is a common practice for small businesses that stock a minimal level of basic supplies. The lender would have the right to seize the inventory in the event that the borrower defaults on the loan. Trust receipt financing, receivables factoring, field warehousing, and receivables assignment are typically used for businesses that have higher levels of inventory or accounts receivable, which is not the case for The Corner Store.

The Corner Store Is a Small-Sized,general Store Which Stocks a Minimal