Industry: wholesale

Invoice finance for wholesalers and distributors

Stock is bought in bulk, ahead of the season. Retail customers pay 30 to 60 days after the sale ships.

Typical advance, wholesale8088%0%25%50%75%100%Typical advance rate for wholesalers and distributors
Wholesale and distribution runs on a seasonal cash-flow squeeze: stock is bought in bulk, often up front or on short supplier terms, ahead of a peak selling period, while retail customers pay the wholesaler on standard 30 to 60-day account terms. Invoice finance advances against sales invoices as soon as they are raised, releasing cash from the current selling cycle to fund the next buying cycle.

The cash-flow pattern

The peak-season squeeze is structural: the bigger the buy-in, the bigger the receivables book that follows it, and the longer stock sits unpaid on retailer terms. Wholesalers that fund their invoice book can restock for the next cycle without waiting on the last one to clear.

Who it helps, who it does not

Ideal fit
  • Distributors buying stock in bulk ahead of season, reselling on 30–60 day retailer account terms
  • Books with a handful of large, recurring retail accounts, a concentration our partners accept
  • Businesses whose buying cycle regularly outruns the last selling cycle's cash
Poor fit
  • Cash-and-carry or trade-counter sales paid immediately, there is no unpaid invoice to fund
  • Drop-shippers who never hold stock or raise a standard trade invoice
  • Businesses with unusually high return or credit-note rates that underwriting cannot account for

Eligibility notes

  • Active UK limited company, LLP or plc, verified against Companies House
  • Invoicing retail or trade customers on standard account payment terms
  • Concentrated retailer books are common and accepted by our funding partners
  • Normal return and credit-note rates are factored into underwriting

Worked example

A distributor invoicing £150,000 to retail accounts in the run-up to a peak season, on 60-day terms:

Illustrative, based on typical UK market ranges
Monthly invoicing£150,000
Advance rate84%
Advanced within 24–48 hours£126,000
Held back until customer pays£24,000
Service fee (1.0% of turnover)–£1,500
Discount fee (base + 2%, ~60 days on drawn funds)–£1,500
Net released after customer pays£21,000

Frequently asked questions

Why is wholesale cash flow so seasonal?

Wholesalers often buy stock in bulk ahead of a peak selling season, paying suppliers up front or on short terms, while their own retailer customers pay on 30 to 60-day account terms. The gap widens exactly when stock purchases are largest.

Can invoice finance fund stock purchases directly?

Invoice finance advances against invoices you have already raised to your customers, not against stock you are about to buy. It frees up the cash from sold stock faster, which indirectly funds the next buying cycle.

Does a small number of large retail customers cause a problem?

It is normal in wholesale distribution for a handful of retailers to make up most of the book. We match you with funding partners comfortable with that concentration rather than penalising it.

Do returns and credit notes complicate the facility?

Funding partners account for a normal level of returns and credit notes when underwriting a wholesale book. Unusually high return rates can affect terms, so it is worth flagging your typical rate upfront.

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Last reviewed: August 2026

See how much you could release.

Two minutes, soft checks only, no impact on your credit score.

See how much you could release