Quick answer
Wholesale & Distribution companies typically wait 30–60 days from retailers and resellers. A combined PO + AR facility funds supplier purchases and then advances on the resulting invoices.
Key takeaways
- Distributors buy inventory upfront and extend credit to retailers, squeezing cash between both ends.
- Common uses: inventory buys, supplier deposits, large retail orders, new product lines.
- Funding usually arrives within 24–48 hours after setup.
Why is cash flow so tight in wholesale & distribution?
Distributors buy inventory upfront and extend credit to retailers, squeezing cash between both ends.
Payment terms of 30–60 days from retailers and resellers are the norm, which means profitable companies can still run out of cash while waiting.
The fix: finance your receivables
A combined PO + AR facility funds supplier purchases and then advances on the resulting invoices.
Because approval depends on your customers' credit, growing and younger distribution businesses can qualify.
What the funds are used for
Wholesale & Distribution clients most often use funding for inventory buys, supplier deposits, large retail orders, new product lines.
Practical cash-flow habits
Invoice the same day work is completed, confirm the customer's approval process upfront, track days-sales-outstanding weekly and keep documentation (POs, delivery proof, timesheets) attached to every invoice — funders pay faster when files are complete.
Get a funding quote in 24 hours
Talk to a National Invoice Factoring specialist at (929) 658-8087 or apply online — no obligation.
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Written and reviewed by the National Invoice Factoring funding team — specialists in receivables and trade finance since 2009.
