Business funding for wholesale and distribution companies
You pay suppliers upfront and your customers pay you on net terms. Funding that bridges inventory and receivables keeps shelves full and lets you take supplier discounts.
How cash flows in wholesale & distribution
Distributors sit in the middle of the cash cycle: buy inventory, hold it, ship it, then wait 30 to 60 days for payment. Growth means more inventory and more receivables at the same time, so successful distributors often feel the tightest cash squeeze.
What we look at
- Deposits and gross margin
- Customer concentration
- Inventory turnover
- Existing financing
Minimums: about $50,000 a month in revenue and one year in business. Larger requests are reviewed case by case.
Common situations
Stocking up before peak season
Buy inventory ahead of demand at better prices.
Taking early-payment discounts
Pay suppliers early when the discount beats the cost of funding.
A new product line or territory
Fund the inventory and sales push.
Customers on net 60
A line of credit to cover the wait.
Funding that fits
Your advisor recommends the structure; you choose, with every cost in writing.
Wholesale & distribution: questions owners ask
Is a line of credit better than a lump sum for inventory?
Usually, if you buy inventory repeatedly: draw, repay as you sell, draw again. A lump sum fits a one-time purchase.
Do you need my receivables list?
Not to start. Your advisor may ask for it later if your funding is structured around receivables.
What do I need to apply?
To start: amount, monthly revenue and time in business, with no documents and no SSN. To get your offer: your last four months of business bank statements.