Wholesalers play a huge role in our economy: they close that vital supply chain gap between manufacturers and consumers. However, they sometimes struggle with the financial gap between purchasing their inventory and getting paid for them after delivery. The problem is that wholesale suppliers typically don’t get paid until long after the goods have left the loading dock.
While customers want to wait to pay for their goods after they are sold, the wholesale distributor has to pay their vendors and suppliers. It’s a delicate financial balance that can jeopardize cash flow when customers have negotiated long payment terms. Some distributors turn to banks for loans and lines of credit, but many are turned down, based on their credit history or lack of collateral.
Fortunately, when wholesalers choose factoring for their cash flow solution, they can qualify for fast financing without a strong credit background. Factoring companies like Interstate Capital study a potential client’s customers’ credit scores and payment histories – not the client’s own creditworthiness.
Wholesalers who start factoring their invoices with Interstate Capital turn the money sitting in their outstanding accounts receivable into cash. They can pay their regular bills, including payroll, rent, transportation, plus they can purchase more inventory. They can unlock those funds to build seasonal inventory, take on more customers with long payment terms, test new products and brands, and hire sales people who can sign on more customers.
With Interstate Capital, you can usually get same-day payment as soon as you submit your invoices for delivered products. With this infusion of cash, you can take advantage of volume discounts and early payment discounts. As you shorten your cash conversion cycle, you’ll also improve your own credit score.
Wholesale factoring is a non-debt solution that lets you get paid upfront, rather than wait for customers that take 30, 60 or 90 days to pay. With Interstate Capital handling your collections, invoice bookkeeping, and other back-office tasks, you’ll have more time to focus on growing your wholesale business.
About Interstate Capital
Interstate Capital has funded over 10,000 companies since 1993, making it one of the oldest and largest factoring companies in the alternative funding market. Interstate purchases nearly $1 billion dollars of invoices annually from hundreds of clients in a wide range of industries throughout North America and each client receives individual attention from a dedicated account manager. Get in touch with us so that you can learn more about the factoring programs designed for wholesalers. Let us customize a program for you.