Distribution
Bridge the gap between vendor terms and customer terms. Stock inventory, fulfill large orders, and capture early payment discounts, without the cash flow squeeze.
Capital that understands distribution cycles and moves at inventory speed.
The challenge
Distribution economics run on a single metric: the cash conversion cycle. You pay vendors in 15-30 days. Customers pay you in 60-90 days. The spread between those two dates is the gap that determines whether you grow or stall.
A distributor carrying $4M in inventory with a 75-day cash conversion cycle has $4M in capital locked up at any given time. The bank lends $500K against liquidation value. Volume discount windows from key suppliers require $300K in upfront purchasing, but the cash is tied up in receivables from last month's shipments. A seasonal inventory build for Q4 orders requires $1M in product by August, with sales revenue arriving in January.
Your Costs Are Upfront
Your Revenue Comes Later
The result
You're caught in the middle. Vendors demand faster payment while customers insist on extended terms. Inventory sits on your shelves, tying up capital for months. Large opportunities pass you by because you can't stock enough inventory to fulfill them.
Sound familiar?
A major retailer wants to place a $500K order, but you need to stock inventory 90 days before they pay. Your credit line is maxed.
Your supplier offers 5% discount for payment in 10 days instead of 30. On $200K monthly purchases, that's $10K in savings, but you don't have the cash.
Q3 requires massive inventory investment for Q4 holiday season. You need $400K in capital now, but customers won't pay until January.
Solution Seasonal inventory financing scales up for peak season, then scales back in slower months. Capital when you need it most.
Adding a new category requires $250K in initial inventory, but you can't predict sales velocity yet. Banks won't lend against unproven inventory.
Operating 3 distribution centers, each requiring local inventory. Cash is spread thin across locations, limiting growth at any single location.
A Fortune 500 customer wants to buy from you, but requires Net 120 terms. You can't wait 4 months for payment.
The toolkit
Different distribution challenges require different financing tools. Here's what works best for the situations distributors face:
Credit line against your entire receivables portfolio. Similar to factoring but structured differently, good for distributors wanting more control over customer relationships.
Learn moreSpecialized solution focused specifically on inventory as collateral. Good for distributors with high inventory turns and strong vendor relationships.
Learn moreIn practice
Industrial Supplies Distributor
Electronics Distributor
Building Materials Distributor
Medical Supplies Distributor
Tell us a little about your inventory and receivables and we'll come back with real numbers: facility size, rate, and timeline.
Same-day preliminary answer
The difference
Traditional banks undervalue inventory. We understand distribution business models. Your inventory isn't a risk. It's your revenue engine. We lend against it appropriately.
You don't control the timing gap. Your suppliers and customers do. We provide capital that bridges this gap, giving you the working capital to operate profitably despite payment term mismatches.
Distribution operates on volume. Small margin improvements (like early payment discounts) have massive impact. We structure financing that helps you capture these opportunities.
Your capital needs aren't constant, they're seasonal. Build-up periods require significant capital, then scale back. We provide flexible facilities that match your actual needs, not fixed term loans.
Multiple warehouses, regional inventory, and distributed operations create unique financing challenges. We structure facilities that work across your entire distribution network, not just one location.
Who we serve
Industrial supplies, MRO products, safety equipment, tools, and manufacturing supplies. High-volume, relationship-based business with regional or national footprint.
Typical Needs ABL, invoice factoring, early payment discount optimization
Electronic components, semiconductors, IT equipment, consumer electronics. Fast-moving inventory, technology refresh cycles, large customer concentration.
Typical Needs Invoice factoring, PO financing for large orders, ABL for inventory management
Lumber, concrete, roofing, plumbing, electrical supplies. Highly seasonal with Q2-Q3 peaks. Project-based sales with contractor customers.
Typical Needs Seasonal facilities, invoice factoring for contractor receivables, equipment financing
Medical equipment, surgical supplies, pharmaceuticals (non-controlled), healthcare consumables. Regulatory complexity, insurance payment delays.
Typical Needs AR financing, invoice factoring with healthcare expertise, specialized facilities
Restaurant supplies, food products, beverage distribution. Frequent deliveries, high inventory turns, perishability considerations.
Typical Needs Working capital facilities, equipment financing for trucks/refrigeration, invoice factoring
Consumer goods, retail products, e-commerce fulfillment. Multi-channel distribution, seasonal peaks, SKU complexity.
Typical Needs ABL for inventory management, seasonal facilities, PO financing for retail orders
Getting started
Share your situation, challenges, and what you're trying to accomplish. We explain which financing solutions fit your needs and provide estimated terms.
Basic business information: financials, receivables aging, inventory reports, customer list. We review and provide a proposal within 24-48 hours.
Review and approve final terms. Sign agreements electronically. Complete due diligence process.
Access capital for your immediate needs. For facilities (ABL, AR financing), establish credit line for ongoing access.
Dedicated account team. Direct decision-maker access. Regular business reviews. Adjust facilities as your needs evolve.
Common questions
We work with wholesale distributors and wholesalers across industries: industrial supplies, electronics, building materials, medical supplies, foodservice, consumer goods, and more. If you buy inventory from suppliers and sell to customers with payment terms, we can help.
Yes. Traditional banks value inventory at fire-sale liquidation rates. We understand distribution. Your inventory turns multiple times per year at gross profit. We lend based on ongoing business value, not worst-case liquidation scenarios.
Absolutely. Early payment discounts (typically 2-5% for payment in 10 days) can significantly improve your margins. Asset-based lending or invoice factoring provides the immediate capital to pay suppliers early and capture these discounts.
Yes. Invoice factoring is specifically designed for this. Your customers pay on their normal terms (Net 60, 90, 120), but you get paid immediately. You maintain customer relationships without the cash flow strain.
We structure seasonal facilities all the time. Higher credit lines during your peak season (Q2-Q3 for construction, Q3-Q4 for retail, etc.), lower in off-season. You pay for capital only when you're using it.
We structure facilities based on your consolidated inventory and receivables across all locations. You get one facility that works for your entire operation, not separate facilities for each location.
For immediate needs, invoice factoring or PO financing can fund in 2-5 business days. For ongoing needs, an ABL facility provides 24-hour access once established (1-2 weeks for initial setup).
Recent financials (P&L, balance sheet), accounts receivable aging, inventory report, and customer list. For facilities, we'll also want to understand your supplier relationships and inventory turnover rates.
For invoice factoring, typically yes, they pay an account in your name at our lockbox. For AR financing facilities, we can structure it where your customers continue paying you directly (non-notification structure).
Faster (days vs. months), more flexible (scales with your business), and focused on your assets and cash flow rather than just historical financial ratios. Banks often undervalue inventory and may not understand distribution business models. We do.
Get a distribution finance quote in 24 hours.
One working-capital decision every other week. Which asset to borrow against, what a facility costs all-in, or how to make payroll before your customer pays, in a two-minute read.
Bi-weekly. 26 issues a year.