Wholesaler and Distributor Business Loans From $5,000 to $1 Million

It is funding sized to how a distributor actually holds money, which is in stock on a shelf and in invoices waiting to be paid. The same funding covers a bulk inventory purchase, a warehouse expansion, or the gap between paying a supplier and collecting from a customer. General line distributors carrying a wide catalog use it more often than specialists, because a broad catalog turns at several different speeds at once.

Because the price you get depends on the size of the order, and the size of the order depends on cash you have not collected yet. Funding closes that gap. It also carries a seasonal low, pays for entry into a new product line, and keeps payroll and storage covered while a large share of the balance sheet is sitting on a warehouse shelf.

Bulk inventory purchases, warehouse expansion and racking, delivery trucks and material handling equipment, inventory and order-management software, extra staff through a peak season, and covering operating costs while accounts settle on terms. Most of the requests we see are one of the first two.

Yes. Inventory financing — in our network this is usually a working capital loan sized to the stock it buys — is one of the four most used, along with Working Capital Loans for general operating costs, Equipment Financing for trucks and material handling, and Business Lines of Credit for the limit you draw against. Accounts Receivable Factoring joins them where the receivables are the tightest part of the picture. A general line distributor usually ends up with more than one, because a fast-moving category and a slow-moving one do not want the same repayment shape.

It depends on the product. Inventory Financing is generally tied to the value of the stock it buys, so the amount available moves as your stock level does across a buying season. A line of credit is sized to a limit you draw against. An advance is sized to your sales and repaid as a share of them.

Taking a supplier’s volume discount the week it is offered rather than the month you can afford it. Beyond that, it is being able to hold a broad catalog without the slow-moving half strangling the fast-moving half, and covering payroll and storage through a seasonal low without calling accounts to chase payment early.

Taking on a repayment schedule that runs faster than your own collections. If your suppliers want thirty days and your customers take sixty, a daily or weekly remittance can put you further behind rather than ahead. Match the repayment to the collection cycle, and be careful about stacking a second advance on one that is still running.

It changes by product and by funder. Most look at revenue, credit history, how long the business has been trading and what other debt it carries. In this category funders in our network will also weigh inventory value and the quality of your receivables, which is often where a distributor’s file is strongest.

Yes. Every credit profile gets considered here, including owners with a prior bankruptcy or a tax lien on file. Where the receivables are solid, factoring in particular puts most of the weight on your customers’ credit rather than on yours, which is why it is often the first thing we look at for a distributor with a rough personal file.

We ask what the reason was. Some funders will not fund inventory-heavy businesses at all and others specialize in them, so a decline frequently says more about the desk than about the distributor. The same file goes to other funders in our network, and where the block is something you can move, we will tell you what it is.

One online application, with recent bank statements and whatever financials you keep. If the money is for a specific purchase, name it and give the number. It goes out to our whole funder network from there, and approved funds can be in your account in as little as 24 hours.