Invoice finance for wholesalers and distributors
Wholesale invoice finance may release part of the money owed on completed trade sales. Explore whether it can help fund replenishment while retailers and business customers use their credit terms.
Positive Funding Limited is a finance broker. Funding is subject to provider assessment and agreed terms.
Sales growth can increase the cash held by customers
Stock may leave the warehouse quickly while its payment takes much longer. Reordering then creates another supplier commitment before cash from the previous shipment arrives.
Track unsold inventory separately from delivered, invoiced goods. A receivables facility supports approved customer debts; it does not automatically fund everything on the shelves.
Review net customer balances
Allow for rebates, returns and promotional deductions when estimating what is collectible.
Prepare for seasonal orders
Check funding capacity before larger trade balances build up.
Match supplier commitments
Assess whether the timing of an advance fits the next stock payment.
Funding the gap after wholesale delivery
Show the completed sale
Link the invoice to the trade order and delivery record. Identify any return rights or rebates that may affect its value.
Confirm buyer availability
The provider assesses the account and agrees limits. A substantial order does not guarantee that every pound invoiced will be eligible.
Reconcile the retailer receipt
Match remittances, credits and deductions to the ledger. The remaining balance is settled after the advance and agreed charges.
Trade allowances need to be part of the calculation
Volume rebates, returns and promotional support can reduce what a retailer eventually pays. Explain these terms before a funding limit is agreed. Where a customer also supplies your business, disclose any offsetting balances rather than treating sales debts in isolation.
Decide how to manage trade collections
Invoice factoring
Factoring can help follow up a broad trade ledger. Check how the provider handles retailer deductions and queries requiring your sales team.
Invoice discounting
Discounting may fit a wholesaler with effective account reconciliation. You keep collecting while providing the funder with accurate ledger information.
Selective invoice finance
For an unusual large order, selected-invoice funding may be worth exploring. Compare the individual arrangement with the ongoing cash needs of the wider stock cycle.
Compare factoring and invoice discounting before choosing who manages collections.
Illustration: an approved trade shipment
If £96,000 of wholesale invoices qualifies at an assumed 80%, the advance is £76,800. The £19,200 balance remains before fees and deductions. Returns or reserves can change these amounts.
The illustration does not imply acceptance of every retailer or trade contract.
Assess cost through busy and quiet periods
Ask for pricing using realistic sales volume, collections and drawings. Include service minimums during quiet months, funding charges and any optional protection. Check how rebates affect availability as well as profitability. Read our guide to invoice finance fees.
Prepare the stock-to-cash picture
Bring aged debtors, main trading agreements, sample delivery evidence and recent accounts. Explain seasonality, returns, export buyers and your largest exposures. Include supplier payment dates and existing finance so the discussion addresses the whole cash gap.
Wholesale funding questions
Can unsold inventory generate an advance?
Not under an ordinary invoice facility simply because it has value. Stock funding is a different requirement from finance against customer debts.
Are retailer rebate agreements a problem?
They need to be understood. The funder may adjust eligible debt or hold reserves to reflect amounts the retailer can deduct.
What should we do when goods are returned?
Issue and report the appropriate credit promptly. A reduced receivable can change the funds available or the balance already advanced.
Can existing trade collection processes continue?
Discounting may allow that, subject to assessment. Confirm reporting, payment routing and confidentiality rather than assuming they remain unchanged.
Discuss funding for your trade ledger
Tell Positive Funding which accounts are waiting to pay and what replenishment commitments are approaching. We can explore how eligible sales debts might support that cash cycle.
Funding is subject to eligibility and provider agreement. Fees, guarantees and security requirements vary. Explore other business sectors.