Black Friday Inventory Finance

Retailers have cut back on inventory and the consumer may find certain products sold out or not discounted as deeply as one would think. But the retailer also runs a risk of running out and having paying customers walking out of their stores putting their cash back into their wallets.

So let's financial engineer the solution. What if a percentage of the inventory is held in an arms length third party investment vehicle. The retailer has the product in his system. If it sells they split the margins. If it does not sell the retailer is not obligated. With most retail margins the investor receives approximately a 50% return over say a six month hold and does not absorb any marketing or G&A costs. If the product does not sell it is sent to discounters and liquidators. costs are tax deductible.

A few rough edges but if you can slice and dice mortgages why not slice and dice inventories.