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Unlike PO financing or factoring, costs associated with ICG's inventory funding program are based on the cost of the goods, rather than on the amount of purchase order or receivable. In general, costs associated with ICG's funding program amount to approximately 12% of the cost of goods financed during the transaction. The fee structure is broken down below:

Mark-Up Fee:

ICG charges a 5% mark-up over the cost of goods bought on your behalf. For example, if ICG purchases inventory amounting to $10,000 on your behalf, you would have to pay ICG $10,500 once you have sold the inventory to your client (or before that, if you deem necessary).

Stocking Fees:

Stocking fees for the first 3 weeks are free. Once this grace period is over, stocking fees equivalent to 1.5% of the cost of goods still under ICG's title are charged. Stocking fees are charged on a weekly basis.

Example:

ICG purchases $100,000 on your behalf. During the first 3 weeks after the purchase, you sell 50% ($50,000) of the goods, 25% ($25,000) during the fourth week and the remaining 25% during the fifth week. This would be the cost breakdown:

Cost of goods from manufacturer
$100,000
Mark up fee (5%)
$5,000
Stocking Fees
$1125
(1.5% x $25,000) week 4
(3% x $25,000) week 5
Total Costs
$6,125

In the above example, the client incurred in a 6.12% increase in its cost of goods. Most of our clients, however, have inventory turns of over 2 months, which translate to slightly higher increases in cost of goods.

However, because of ICG's high purchasing power, many of our clients completely offset the cost of inventory funding by being able to negotiate volume discounts from their vendors.

To find out how much it would cost for you to have your inventory finaced by ICG's program, click HERE.

Due diligence fee:

ICG charges a one-time only $3,500 due diligence fee. Generally, this fee is returned to the client if ICG decides not to finance the deal. 50% of the due diligence fee is due once ICG and the client have agreed to proceed with the funding, and the client has signed a copy of ICG’s soft-commitment offer. The remaining 50% is added to the fees once ICG has financed inventory for the client and is due at the end of the first round of funding. Subsequent fundings do not require a due diligence fee, only the aforementioned fee structure.