Cash sits in the warehouse and in everyone else's payables
Distribution is a business of two payment calendars that rarely line up. Suppliers want payment quickly — often with a discount for paying faster — while customers expect net-30 or net-60. Everything in between sits as inventory on your shelves. The working capital requirement grows in direct proportion to how well the business is doing.
Where it squeezes
- 01Supplier terms that are shorter than the terms you extend to customers
- 02Inventory capital locked in the warehouse between purchase and sale
- 03Net-30 to net-60 receivables from retail and commercial buyers
- 04Volume discounts that require cash you do not have on hand
- 05Warehousing, handling, and delivery fleet costs
What owners use capital for
- Funding a large inventory purchase or volume discount
- Bridging the gap between supplier terms and customer terms
- Expanding warehouse space or adding delivery vehicles
- Taking on a new large account
- Covering operating costs through a slow purchasing cycle
What wholesale businesses most often use — in order.
Invoice Factoring
B2B businesses carrying real receivables from slow-paying customers.
- Amount
- Up to 90% advance rate
- Term
- Per-invoice, no long-term contract
- Speed
- Fast once your account is set up
- Cost basis
- A discount on the invoice face value
- Scales with your receivables
- No long-term contract
- Your customer's credit matters most
Only works if you invoice other businesses — there is nothing to advance against otherwise.
Compare structuresBusiness Line of Credit
Businesses that want capital on standby for recurring or unexpected needs.
- Amount
- $10K – $250K revolving
- Term
- Revolving, typically renewed annually
- Speed
- Days to set up, then draw on demand
- Cost basis
- You are charged only on what you draw
- Draw and repay on your schedule
- Pay only for what you use
- Replenishes as you repay
Approval amounts are usually smaller than a term structure, and the line must be maintained.
Compare structuresWorking Capital
Businesses that want a fixed schedule and a clear payoff date.
- Amount
- $5K – $2M
- Term
- 3 – 24 months, typical
- Speed
- Days, once your file is complete
- Cost basis
- Fixed total cost disclosed before signing
- Predictable payment schedule
- No collateral required
- Clear payoff horizon
Less flexible than a line of credit — you take the full amount up front and repay on a set schedule.
Compare structuresEquipment & Expansion
Businesses making a larger, longer-horizon investment.
- Amount
- $25K – $2M
- Term
- 12 – 36 months, typical
- Speed
- Days to a couple of weeks
- Cost basis
- Cost reflects the asset and the term
- Asset-backed options
- Longer terms spread the cost
- Preserves working cash
The capital is purpose-bound to the asset or project, not general-use cash.
Compare structuresAmount ranges and timelines are typical ranges, not guarantees. All financing is subject to underwriting review; product availability and terms vary by applicant.
Asked and answered.
Net-60 receivables and retainage while payroll runs every Friday. The work is finished; the money is still on someone else's schedule.
Fuel and drivers are paid this week. The broker pays in 30 to 45 days. That gap is the whole business problem.
Insurance reimbursement lag turns profitable practices into cash-tight ones. The revenue is real; the timing is not yours.
Get a straight answer for your business.
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