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§I · Industry brief

Advances against buyer receivables to fund inventory restocking.

Wholesalers and distributors purchase inventory from manufacturers or importers and sell to retailers, chains, or other commercial buyers on net-30 to net-60 terms. The cash cycle, buy inventory, ship it, then wait for payment, is the core constraint. Factoring against the buyer's invoice releases capital to restock.

§What the cash-flow problem actually looks like
  • 01

    Inventory procurement precedes buyer payment by 30 to 60 days

    Wholesalers pay manufacturers or importers on short terms or COD. Retailers and commercial buyers pay for the same inventory on 30- to 60-day terms. The wholesaler carries the timing difference.

  • 02

    Per-unit margins are narrow; growth is volume-dependent

    Wholesale operates on narrow per-unit margins. Increasing revenue requires moving more units, which increases the upfront inventory capital commitment proportionally.

  • 03

    Seasonal product lines require advance procurement

    Holiday, back-to-school, and seasonal inventory is ordered months ahead of the selling season. The procurement investment occurs well before the corresponding buyer orders and payments.

Typical operator

Wholesalers and distributors selling to retailers, chains, or commercial buyers. Annual revenue $500K to $25M+.

Documents we usually need
  • ·AR aging report
  • ·Sample invoices to retail or commercial buyers
  • ·Supplier payment terms (if relevant)
  • ·Voided check for ACH funding
§How the desk handles it
  • 01Advance against approved buyer invoices so the wholesaler can restock inventory, take volume discounts from suppliers, and fulfill larger orders without waiting on net-60.
  • 02The desk monitors the receivable and tracks payment, keeping the buyer relationship intact. The wholesaler retains responsibility for collection.
  • 03Facility grows with invoice volume, so seasonal peaks don't require a new application.
§Most common product for this industry

Invoice Factoring

An advance against your 30/60/90-day B2B receivables, with recourse. We advance against the invoice and track the payment; you keep responsibility for collection, and we don't assume the debtor's non-payment risk.

What it is
§At a glance
  • Funding speedOnce approved
  • AdvanceSubstantial against face value
  • Debtor typeRetailers, chains, commercial buyers
  • CollectionsMonitored by the desk. Client retains collection responsibility.
  • Volume scalingGrows with the business
  • Personal guaranteeNot required on the invoice
§Other lines on the same desk

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