Business funding for wholesale and distribution

Wholesalers sit in the middle of the supply chain, which is exactly where cash gets squeezed. Suppliers, especially overseas, want deposits and payment before goods are shipped. Retailers and trade customers want 30, 45 or 60 days. The more the business grows, the bigger the gap becomes.

How cash moves through wholesalers

A typical cycle starts with a supplier deposit, then the balance on shipment, then weeks of freight and customs, then warehousing until orders ship to customers, then 30 to 60 days until those customers pay. The cash cycle can easily stretch to three or four months, and every new customer adds to it.

What usually triggers a funding need

• Supplier deposits and balances due before goods arrive.
• Retail customers paying on long terms.
• Growing sales widening the working capital gap.
• Bulk discounts that require larger orders.
• Currency movements on imported stock.

Numbers in front of you? Put them in the enquiry and we will tell you plainly what looks realistic. Enquiring does not touch your credit file.

Which funding suits wholesalers?

Funding	Why it suits wholesalers
Invoice finance	Grows with your debtor book
Line of credit	Supplier deposits and stock cycles
Working capital loan	A one-off large order
Property-secured loan	Larger inventory investment and growth

What lenders look at

• Debtor book quality and customer concentration.
• Inventory turnover and aged stock.
• Supplier terms and any arrears.
• Gross margin after freight and duties.

For larger amounts, or when the statements do not yet show the full picture, property security from $20k to $5m changes the assessment. No valuation is needed, and repayments can be deferred by paying interest up front or capitalising it.

Presenting your business to a lender

Think about what an assessor sees when they open your statements. For wholesalers, they will look for regular income, how the account copes in the leanest month and whether other lenders are already taking a slice each week. You can help by choosing a sensible time to apply, explaining seasonal swings or one-off events, and bringing tax lodgements up to date before you enquire.

A worked example (illustrative)

A food distributor turning over about $4m a year supplies independent grocers on 30-day terms and imports some lines with a 30% deposit. Winning a new chain of stores adds $50,000 a month in sales and roughly $90,000 to the cash tied up in the cycle. An invoice finance facility funds the new debtors as they grow, and a line of credit covers import deposits.

Habits that ease the cash squeeze

Shorten the cycle wherever you can: negotiate supplier terms, hold less slow stock, invoice on dispatch and chase debtors early. The working capital calculator shows how much each day saved is worth.

The short version

• Suppliers want paying before retailers pay you
• The gap grows every time sales grow
• Invoice finance suits large B2B debtor books
• Lines of credit suit inventory cycles

How the process runs

You send a 60-second enquiry with the amount, the purpose and a few facts about the business. A real person reads it, usually the same business day, and calls to fill in the gaps. For unsecured options they will ask for recent business bank statements, which can normally be shared through a secure read-only link. For property-secured options they will ask about the property and what is owed on it, with no valuation needed. You then see the offer in plain terms, including the total cost, and decide whether to go ahead. A credit check happens only at that point. If something about your situation is unusual, say so early; it is far easier to plan around a known issue than a surprise.

When borrowing helps, and when it does not

Good borrowing has a job and an end date. Before you enquire, write down in one sentence what the money is for and how it will be repaid. If that sentence is easy to write, you are probably in the right place. If it is not, it is worth a closer look at the business’s cash flow before taking on new repayments.

Before you send the enquiry

Have these within reach and the process moves quickly, because each one answers a question the assessor would otherwise have to come back and ask:

• ABN, business structure and how long you have traded.
• Recent business bank statements, ideally shared online.
• What the money is for and how it will be repaid.
• Any tax debt, default or arrears you should mention up front.
• Contact details for anyone else who would need to sign.

Help us match you first time

The enquiry asks for the amount, the purpose, how long you have traded, your monthly revenue, your credit history, your state and whether you own real estate. Each answer steers your enquiry towards the right option. Accurate answers let the first call move straight to solutions. Rounded-up turnover or a credit history that turns out to be different from the form means starting again, which costs everyone time.

See what you could qualify for

If this sounds like your business, start the enquiry. It takes about 60 seconds and runs no credit check. Your details are not sprayed across the market; the team that reads your enquiry is the team that works on it. Please give real numbers rather than hopeful ones. A clear picture of turnover, credit history and property lets us point you to the right funding straight away.