Wholesale business loans that fund the next truckload
You pay for the truckload today. Your customers pay you on Net 30 to Net 90. Financing bridges the gap between the two.
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Not sure which financing fits?
Speed varies by product. Working capital and lines of credit can fund within a day; SBA loans take 30–90 days.
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See what you qualify for — checking with Fundur won’t affect your credit score.
Paid today. Billed at Net 60.
The truckload's paid for. Your customer's invoice isn't due yet.
Guidance for distributors
An advisor compares lenders and flags tradeoffs before you stock up.
Why wholesale cash flow is different
You buy the inventory before a single unit resells — and when your customer finally pays, it's on their calendar, not yours.
- You pay for the truckload before you've sold a single case off it. Replenishment orders are bought by the pallet or truckload to hit supplier price breaks and keep the warehouse stocked — and many suppliers want payment at order time or on their own short terms, well before those same cases move out the door.
- You extend the same Net terms to your customers that a big account can negotiate. Retailers, contractors, and institutional buyers routinely expect Net 30, Net 60, or even Net 90 on their own purchase orders — and the biggest accounts, the ones a distributor can least afford to lose, are usually the ones asking for the longest terms.
- The margin on any single case is thin — the business runs on volume, not markup. Wholesale distribution is built to make money on turns across many transactions, not by padding any one sale, which leaves little room to absorb a late-paying account without feeling it.
- A handful of accounts can carry most of the book — and most of the exposure. A distributor's largest customers often represent a disproportionate share of receivables, so one account paying late, cutting an order, or closing its doors doesn't just sting — it can move the whole month's cash position.
None of that is a problem to fix — it's how wholesale distribution gets paid, the same for a five-person specialty distributor and a regional foodservice supplier. A distributor can be completely current on every account and still be cash-short the week a truckload bill comes due and last month's Net 60 invoices haven't cleared yet, because the money is real, it's just not in the account.
That payment architecture produces the same handful of pressure points on almost every distributor's books. Four of them show up most often — and each one has a different right answer.
Four binds that put distributors in a cash squeeze
The reality above creates the same handful of pressure points across almost every wholesale distributor. Each one has a different right answer — matching them correctly is most of the job.
You pay the supplier before the truck even leaves the dock.
Replenishment orders are paid at booking or on the supplier's own tight terms, weeks before those same cases go out the door on your customers' terms. The bigger the order, the bigger the cash-out before a single unit resells.
A working capital loan — sized to the replenishment buy, repaid on a fixed schedule while the inventory turns and sells.
The bigger the account, the longer you wait to get paid.
Your largest customers can negotiate the longest terms — Net 60 and Net 90 aren't unusual on the accounts that make up the biggest share of your book. That's exactly the volume a distributor can't afford to turn away.
Invoice factoring — advances most of an approved invoice's value once the order ships, so you're not financing your customer's payment terms yourself.
A forklift breaks down, and the whole route stalls behind it.
Loading docks, forklifts, and delivery trucks don't have backups sitting idle at a small distributor. One down unit can stall picking, loading, and every delivery scheduled behind it — and a replacement is a five-figure decision made on short notice.
Equipment financing — spreads the cost of a forklift, truck, or racking system over its working life, with the equipment itself typically serving as collateral.
A new account bigger than your usual book means stocking up before you know it'll stick.
Landing a large new retailer or institutional buyer often means carrying more inventory and extending more credit before that customer has paid a single invoice — a bet the distributor has to fund itself first.
A business line of credit — draw against it to stock the new account, repay as its invoices clear, and keep the capacity open for the next one.
One caution before you choose: the wrong instrument is expensive. Short-term working capital used to buy a forklift that'll run for ten years costs far more than equipment financing; invoice factoring solves nothing if the order hasn't shipped yet. The next section maps situations to the option that actually fits — or see what your business qualifies for and let an advisor narrow it down with you.
Which financing is right for your situation?
There's no single best option — only the one that fits what's in front of you. Find the situation that sounds like yours, and see what a Fundur advisor would likely point you toward, and why.
"Every truckload means buying before last week's order is even sold."
Business Line of Credit
Reusable capacity you draw against as you need it and repay — interest only on what you use.
Explore lines of credit"The order shipped last week. My customer's Net 60 just started."
Invoice Factoring
Turns receivables you've already earned into working cash instead of waiting out the payment cycle.
Explore invoice factoring"My supplier wants payment now. My biggest account pays on Net 60."
Working Capital Loan
Covers the everyday operating costs now, repaid on a fixed schedule over a defined term.
Explore working capital loans"The forklift's down, and nothing's moving off the loading dock."
Equipment Financing
Spreads the cost over the asset's working life, and the equipment itself usually serves as the collateral.
Explore equipment financing"We're adding a second warehouse to cover a whole new territory."
Business Term Loan
A defined lump sum for a large, planned commitment, repaid in predictable fixed installments.
Explore term loans"We're finally buying the distribution building we've leased for a decade."
SBA Loan
Longer terms and lower rates spread a major investment across the years it actually earns.
Explore SBA loansWhat business financing costs — and how to compare offers
Pricing varies by lender, product, and your business profile, so any page quoting you a single rate is guessing. What you can control is knowing how offers are priced and insisting they're presented the same way.
Interest rate vs. factor rate
An interest rate is charged on a shrinking balance, so paying down early reduces what you owe. A factor rate is a multiplier fixed at signing — a 1.25 factor on $100,000 means $125,000 repaid whether you take the full term or not. Ask which one you're being quoted before anything else.
What moves your pricing
Time in business, monthly revenue and its consistency, credit profile, the amount requested, and whether the financing is secured. Equipment financing typically prices best because the machine itself is collateral; fast unsecured working capital typically prices highest.
Fees worth asking about
Origination fees (commonly 1%–5%), and the prepayment terms. On interest-based financing, paying early should save money; on factor-rate financing it often won't unless the lender offers an early-payoff discount. Payment frequency matters too — daily or weekly drafts pull cash faster than monthly.
Match the term to the asset
The most expensive mistake isn't a high rate — it's a mismatch. Repaying a ten-year machine over nine months strains cash flow no matter how good the rate looks. Short-term money belongs against short-term gaps you'll repay from an identified draw.
The one habit that protects you: insist on two numbers in writing from every lender — the total dollars you will repay and the APR — and compare offers only on those. Never on the factor rate or the monthly payment alone. It's also how Fundur presents every offer, so the comparison is honest from the start.
Rates, factor rates, and fees vary by lender and business. Your actual terms are disclosed in full before you accept anything.
Tell us about the job. We'll find the fit.
Most owners end up using more than one — a line of credit for one need, equipment financing for another. An advisor compares your real options across multiple lenders and tells you plainly when borrowing isn't the right move. Checking with Fundur won’t affect your credit.
How wholesale distributors put financing to work
Used well, financing isn't a distress signal — it's how distributors take on the account they'd otherwise pass on. Three situations that show up constantly, with the math behind them.
Stocking up for a new account before the first invoice clears
A regional foodservice distributor wins a new multi-location restaurant-chain customer — an account roughly a third larger than its current largest one. The chain expects a full initial stocking order delivered before its first invoice is even due, and its own accounts-payable cycle runs Net 60. A business line of credit funds the stock-up and the first few weeks of replenishment, drawn against as orders ship and repaid as the chain's invoices clear. The distributor lands the account without draining the cash it needs to keep servicing every other customer on its book.
Turning a Net 60 contractor invoice into cash before the next truckload is due
A building-materials distributor ships a large order to a general contractor on the contractor's standard Net 60 terms — good, real revenue, but the next truckload of the same product has to be paid for in a few weeks, well before that invoice is anywhere close to due. Invoice factoring advances most of the shipped order's value within a few business days, so the next replenishment buy doesn't wait on one customer's payment cycle. The distributor keeps both the contractor relationship and the warehouse stocked for the next order.
Replacing a forklift before it stalls the whole delivery route
A regional beverage distributor's primary loading-dock forklift fails mid-week, and with one dock and one lift, every truck scheduled to load that day sits idle behind it. Equipment financing buys a replacement forklift outright, with the machine itself securing the loan, so the cash earmarked for next week's replenishment buy stays untouched. Deliveries resume the same week, and the distributor isn't choosing between a working forklift and a fully stocked warehouse.
Figures are illustrative examples, not offers. The pattern holds, though: in each case the financing is sized to a specific, identifiable gap with a clear repayment source — which is exactly what a lender is looking for, too.
From application to funded, in three steps
Most of the process happens in minutes, and many wholesale distribution businesses are funded within a day — without pulling anyone off the floor to chase paperwork.
Tell us about the business
Time in business, monthly revenue, your trade, and what the money is for. Checking your options with Fundur won’t affect your credit score. A lender may run its own credit check before funding, which may affect your score.
About 5 minutesCompare offers with an advisor
See what you qualify for side by side. A dedicated advisor walks through total cost and repayment against your draw schedule — and says so if borrowing isn't the right call.
Same dayGet funded
Accept the offer that works and funds are deposited to your business account — often the same or next business day, so the schedule never slips.
As fast as 24 hrsHave three to six months of business bank statements ready and keep your legal business name consistent across your application, statements, and W-9. Incomplete or mismatched paperwork is the single most common cause of delay. Speed also varies by product: working capital and lines of credit can fund within a day, while SBA loans take 30–90 days and invoice factoring takes a few days to set up before advances begin.
Do you qualify?
Lenders set their own standards, but most weigh the same core signals. Because approval leans on revenue and cash flow rather than perfect credit, many wholesale distribution businesses qualify on the strength of their deposits and order history alone.
Typical signals only — exact thresholds vary by lender and borrower. These are the minimums to see what you qualify for; requirements vary by product, and SBA loans and term loans generally ask for more time in business and a stronger credit profile.
What you'll need to apply
- 3–6 months of business bank statements — the primary way revenue is verified.
- Basic business details — legal entity name, EIN, trade, and time in business.
- Government ID and a voided check — typically required at funding, not to apply.
- For larger requests: business tax returns or a simple profit-and-loss statement.
What lenders look at in wholesale distribution
- Customer concentration. A few accounts making up most of revenue is common in wholesale — lenders weigh how spread out your customer base is, not just your total volume.
- Inventory turnover. How fast product turns from received to resold shows a lender the difference between healthy stock and slow-moving inventory tying up cash.
- Your own supplier terms. Cash-on-delivery versus Net 30 with your suppliers factors into how much of the replenishment gap you're already carrying versus how much financing needs to cover.
- Receivables aging. How consistently your own customers pay on the terms you extend them is one of the clearest signals a lender has that your receivables are real, collectible cash.
Wholesale business loan FAQs
How do I qualify for a wholesale business loan?
Most lenders look for steady monthly revenue (often $10,000+), at least six months in business, and a US business bank account. Recent bank statements matter most; a documented order history and a spread-out customer base strengthen the file, since they show where repayment is coming from.
What credit score do I need for wholesale distribution financing?
Many options start around a 500 credit score. Stronger credit unlocks better pricing and larger amounts, but because approval weighs revenue and cash flow heavily, distributors with fair or rebuilding credit routinely qualify.
How much can I borrow for my wholesale or distribution business?
Amounts typically range from $10,000 up to $5 million depending on revenue, time in business, and the financing type. Equipment financing and larger term loans reach the upper end; working capital and lines of credit are usually sized against monthly deposits.
How fast can I get funded?
Many wholesale distribution businesses get a decision the same day and funding as fast as 24 hours. Speed depends on the lender, the product, and how quickly you provide documents — complete, consistent paperwork is the biggest accelerator.
Do I need collateral for a wholesale business loan?
Many working capital loans and lines of credit are unsecured, though a personal guarantee or general lien on business assets is common. Equipment financing is typically secured by the forklift, truck, or racking itself, which is part of why it prices well.
Are interest payments on wholesale business financing tax deductible?
Interest on business financing is often deductible when funds are used for business purposes, but rules vary by structure and situation. Confirm with your CPA — particularly on equipment, where depreciation treatment may also apply.
Can I get financing to buy inventory in bulk before I've sold it?
Yes — that's the core use case. A working capital loan or line of credit covers a pallet or truckload replenishment buy while it moves from received to resold, then is repaid as your customers' invoices clear. Sizing the financing to the specific order, rather than borrowing generally, is usually the more affordable approach.
Can I factor an invoice I've extended on Net 60 or Net 90 terms to a customer?
Often, yes — invoice factoring is built for exactly this gap, advancing most of an approved invoice's value instead of waiting out the full term. The invoice needs to be for delivered, accepted goods; a purchase order that hasn't shipped yet generally can't be factored directly. An advisor can confirm whether a specific receivable qualifies.
Is this different from trade credit insurance?
Yes. Trade credit insurance protects you if a customer never pays at all — it's a risk-transfer product, most commonly used by larger distributors with significant B2B credit sales. Invoice factoring and working capital financing solve a different problem: getting cash now for revenue you've already earned or are about to spend against, regardless of whether that customer's payment risk is insured.
Does having one or two large accounts hurt my chances of qualifying?
Not automatically, but lenders do weigh it — a distributor depending on one or two accounts for most of its revenue reads as more concentrated risk than one with a spread-out customer base, even at similar total revenue. A documented order history and consistent payment record from that account help offset the concern.
Can I finance a forklift, delivery truck, or warehouse racking?
Yes — equipment financing covers new and used forklifts, delivery vehicles, and racking or material-handling systems, with the equipment typically serving as its own collateral. Because the asset secures the financing, it often prices better than an unsecured option.
Can I get financing to stock up ahead of a customer's own busy season?
Yes — this is a common use of a business line of credit or working capital loan. If a business customer's own selling season means a bigger-than-usual order, the distributor often has to stock and ship well ahead of that customer's payment, and financing bridges the gap until the invoice clears.
Can I get financing to expand my warehouse or add a new territory?
Yes. A business term loan or SBA loan typically fits a warehouse or distribution-center expansion, spreading the cost over the years the added capacity earns. If the need is more urgent than a planned expansion — landing a single large new account, for instance — a line of credit or working capital loan usually fits better.
Financing for related industries
Tell us about the order. We'll find the financing that fits.
See the wholesale distribution financing options you qualify for in minutes — checking with Fundur won’t affect your credit, and there’s no obligation to accept an offer.
Fundur is a financing marketplace, not a lender. Fundur does not make credit decisions or guarantee approval, rates, terms, or funding times. A dedicated funding advisor can walk you through any option you receive. Final terms depend on lender approval.