Managerial Finance Name Institution Managerial Finance Inventory financing can be utilized where there is a high possibility of marketing inventories and no risk of obsolescence is present. The inventory acts as security within the financing arrangement. Financing can take place for up to 70% of the total value of the inventory values offered given that inventory prices remain stable. The cost of financing inventory can be relatively high at times six times above the prime lending rate. There are three types of financing arrangements, namely floating