Delayed payments are a common hurdle for wholesale businesses. With typical payment terms stretching 30, 60, or even 90 days, maintaining healthy cash flow can be challenging. This delay affects your ability to manage daily operations, meet payroll, and capitalize on growth opportunities. One effective solution to overcome these challenges is invoice factoring.
Invoice factoring gives wholesale businesses immediate access to working capital by selling outstanding invoices to a factoring company like Primary Funding. Instead of waiting for customers to pay, you receive funds upfront, keeping your business on track.
Key Benefits of Factoring for Wholesalers
- Steady Cash Flow: Factoring bridges the gap between invoicing and payment, ensuring you have the cash to cover operational expenses.
- Growth-Focused Financing: The more you invoice, the more funding you can access. This flexible model supports business growth without rigid loan terms.
- No Additional Debt: Factoring isn’t a loan. It converts your receivables into working capital without adding debt to your balance sheet.
Maintaining a consistent cash flow is essential to staying competitive in the fast-paced wholesale industry. Whether you need funds to purchase inventory, pay vendors, or plan for expansion, invoice factoring provides the financial flexibility you need.
Recently, we have been able to fund a business looking to expand from direct-to-consumer sales through E-commerce into the wholesale space. With our tailored factoring solutions designed to meet the unique needs of businesses, yours could be funded next. Tell us about what you need by filling out the form here.