Distributor & Wholesale Financing

Distributors and wholesale businesses often need significant working capital to purchase inventory, pay suppliers, manage logistics, and fulfill customer orders before receiving payment.

Lirodean helps distributors and wholesalers evaluate and secure financing solutions through banks, asset-based lenders, factoring companies, and alternative financing providers.

​

Why Do Distributors Need Working Capital?

The cash flow cycle of a distribution business can create a significant financing gap.

A company may need to purchase inventory today, hold it for several weeks, deliver products to customers, and then wait another 30, 60, or 90 days for payment.

As sales increase, the amount of capital tied up in inventory and accounts receivable can increase as well.

​

Financing Options for Distributors & Wholesalers

Potential solutions may include:

Business Lines of Credit

A revolving line of credit can provide flexible access to capital for inventory purchases, supplier payments, logistics, payroll, and other operating expenses.

Asset-Based Lending

Businesses with significant accounts receivable and inventory may qualify for an asset-based credit facility.

Accounts Receivable Financing

Eligible B2B invoices may support additional working capital while the company waits for customers to pay.

Factoring

Factoring may allow a distributor to convert qualifying invoices into liquidity sooner.

Inventory Financing

Certain financing structures may provide availability against eligible inventory in addition to accounts receivable.

Purchase Order Financing

Companies with confirmed customer orders may have financing options to help fund qualifying supplier costs associated with fulfilling those orders.

​

Can I Finance Inventory Before My Customers Pay Me?

Potentially.

Depending on the business and transaction, inventory may be financed through a revolving line of credit, asset-based lending facility, purchase order financing, or another working capital structure.

​

What Do Lenders Evaluate?

Lenders may consider:

• Annual revenue

• Profitability and cash flow

• Accounts receivable aging

• Customer concentration

• Inventory levels and turnover

• Supplier relationships

• Existing debt

• Historical financial statements

• Credit profile

• Available collateral

​

Finance Your Next Stage of Growth

A growing distribution business should not have to turn down opportunities simply because cash is tied up in inventory and receivables.