Distributor and Wholesale Financing
Distributors and wholesalers often pay suppliers before collecting from business customers. Inventory, shipping and receivables can tie up cash at different points in the same sales cycle.
BBB profile &Chamber member
Financing should reflect which assets or transactions actually support the request. A stock forecast, purchase order and delivered-goods invoice are not interchangeable. One advisor matches the file to one lending desk at a time; the file is never sold or auctioned. There is no hard credit pull to explore your options. Commercial financing only. Approval is never guaranteed, and timing depends on the program and the lender.
01 · Distributor and Wholesale FinancingStocking Inventory While Customers Pay on Terms
Build a cash calendar from supplier payments, inventory turnover, delivery dates and actual customer collections. Include freight, storage, damaged stock, returns and discounts. A strong order book can still leave limited cash when products sit in the warehouse or customers pay later than expected. Distinguish recurring timing needs from a continuing margin shortfall.
Explain which products sell consistently and which depend on seasonal demand or a single buyer. Financing costs must fit the margin after logistics and overhead, not just the difference between purchase and selling price. Prepare an aging report for both inventory and receivables. That helps your advisor separate eligible stock, completed sales and future orders before discussing a suitable commercial structure.
Inventory Financing
Inventory financing may involve review of eligible stock, its resale value and how it can be monitored. Obsolete, perishable, customized or slow-moving goods may receive different treatment. Inventory ownership, location and existing collateral claims matter. A purchase cost or retail price is not automatically the value used in underwriting.
Prepare a stock report, supplier details, turnover history and information about storage and insurance. Ask how availability changes as inventory is sold, returned or becomes ineligible. Review reporting requirements, inspection provisions and any restrictions on releasing collateral. Compare the repayment or borrowing structure with a slower sales period; do not assume the entire warehouse will support the requested amount.
Invoice Factoring
Factoring may be reviewed against eligible invoices for delivered goods sold to commercial customers. The customer, delivery evidence, payment terms, disputes and concentration all affect review. Returns, rebates, offsets and acceptance requirements can change collectibility. A receivable from a future shipment is different from an invoice backed by completed delivery.
Review the proposed advance, reserve, fees, recourse and collection process. Ask whether customers are notified, how credits and returns are handled and when remaining proceeds are released. Compare the net cash available with supplier commitments and operating costs. Factoring is not automatically compatible with an existing blanket lien or another receivables agreement; disclose those commitments before proceeding.
Purchase Order Funding
A qualifying purchase order may support a transaction involving a creditworthy commercial buyer and an acceptable supplier. Review examines margins, supplier terms, delivery responsibilities and repayment after the sale. Purchase order funding is not a general promise to purchase any inventory or fund an order that can be cancelled without consequence.
Bring buyer orders, supplier quotes, shipping arrangements and a complete transaction budget. Explain quality control, acceptance, returns and any requirement to pay duties or freight before delivery. Ask how supplier payment and collections are controlled and whether a separate receivables structure is needed after invoicing. Compare all charges with expected gross profit and a realistic delay scenario before agreeing to terms.
Lines of Credit
A commercial line of credit may address recurring cash-flow needs under its own borrowing agreement. Review can include receivables, inventory, business cash flow and existing debt. Availability may change with eligible assets or other conditions. Compare interest, fees, repayment requirements and renewal terms rather than assuming the maximum line remains available indefinitely.
Use the secure application and upload to provide statements, inventory and receivables reports, financials and current obligations. Your advisor reviews the intended use and state restrictions before matching the file. If a proposal is available, stress-test slower stock turnover and collections against the payment schedule. There is no hard credit pull to explore your options. Approval is never guaranteed, and timing depends on the program and the lender.
Start your commercial financing application
About 3 minutes, plus upload. One advisor, one lending desk at a time; the file is never sold or auctioned. Approval is never guaranteed, and timing depends on the program and the lender.
Or call 1.877.977.3015.
Questions, Answered
Inventory financing, purchase order funding or a line may be considered depending on the stock, transaction and business. These structures have different collateral and repayment terms. Approval is never guaranteed, and timing depends on the program and the lender. Prepare turnover reports and supplier details.
Eligible invoices for delivered goods may be reviewed based on customer credit, collection history and supporting documents. Returns, rebates, disputes and existing liens affect eligibility. Compare fees, reserves and recourse; an invoice total is not a guaranteed advance or commitment to fund the business.
Purchase order funding considers qualifying transactions before delivery and collection, including buyer and supplier terms. Factoring considers eligible completed receivables. Bring order documents, supplier quotes and a complete margin calculation. Ask how the transaction will be repaid and whether additional financing is separately required.
Prepare business bank statements, financials, a debt schedule, inventory reports and receivables aging. Explain stock locations, customer concentration and returns. Requirements vary by program and file; no minimum business age or deposit level is stated. Share sensitive records through the secure document upload process.
There is no hard credit pull to explore your options. A later inquiry follows its own authorization process. One advisor matches the file to one lending desk at a time; the file is never sold or auctioned. Commercial financing only, with state and product restrictions.