The financing challenge
Wholesale financing may use revolving credit, receivables finance, inventory lending, or purchase-order structures. Each addresses a different stage of the order-to-cash cycle. The useful question is when money is needed, which assets or orders support it, and when customer receipts can repay the advance.
Build the funding case
Map supplier deposits, manufacturing lead times, shipping, storage, customer delivery, and payment terms. Build the forecast using landed costs and realistic collection dates. Show concentration by supplier, customer, and product. A growing order book should be connected to available inventory and fulfillment capacity rather than treated as cash already earned.
Pressure-test the plan
Returns, damaged goods, tariffs, currency changes, and slow-moving stock can reduce margin and collateral value. A borrowing base can contract if invoices age or inventory becomes ineligible. Check minimum volumes, reserves, reporting, and security conflicts when combining facilities. Avoid counting the same receivable twice in separate funding plans.
Your next-step checklist
- Order-to-cash and landed-cost model
- Receivables and inventory aging
- Supplier and customer concentration
- Eligibility, reserves, and security across facilities
Crack this combination.
Can sales growth increase a distributor’s working-capital need?
Keys track learning on this device and, when signed in, in your Saved files library. Every dossier stays open.
Sources & further reading
This file draws on the following references. Product availability and requirements must be confirmed with the provider.
Levr: accounts receivable reportsLevr: inventory reportsLevr: cash flow projections