Instrument library
Trade & supply chain

Inventory Consignment

Investor funds inventory upfront and retains ownership until it sells. Business sells on consignment and shares proceeds.

How it works
Investor buys inventory in the business's name but holds title. As stock turns, sale proceeds split per a pre-agreed margin. Unsold stock can be returned or rolled.
Best for

Businesses with high inventory costs and fast turnover (retail, FMCG, healthcare supply).

inventory heavy
fast turnover
retail

Related in Trade & supply chain