Distribution and Wholesale Invoice Factoring
Keeping Your Inventory on the Move
Single Point Capital turns invoices into cash so there are no long waiting times on payments, so you can keep supply lines moving.
Distribution Section 1 (Wholesalers and distributors...)
Wholesalers and distributors need a strong cash flow to keep inventory stocked and fill customer orders-that's why we offer solutions designed to improve liquidity and streamline operations
Fast Funding, Personalized Service, and Clear Pricing
24 Hour
Funding
Competitive
Rates
No Hidden
Fees–Ever
Personalized Account Representatives
Invoicing and
Collections
Online
Account Access
Simple Submission
Process
Distribution Section 2 (A rise in purchase orders...)
A rise in purchase orders is generally positive, but it can become challenging if your cash flow is insufficient to fulfill them. Invoice factoring for distributors and wholesalers can provide the solution to this problem
Why Distributors and Wholesalers Benefit from Factoring Solutions
Increase Working Capital
By converting receivables into instant cash, businesses can reinvest in inventory, pay employees, and cover other business expenses, which supports growth and stability.
Manage Seasonal Fluctuations
Factoring allows businesses to smooth out cash flow during periods of high demand or seasonal changes, ensuring they can maintain operations even when cash is tied up in receivables.
Focus on Core Operations
With immediate funding, distributors and wholesalers can focus on growing their business, purchasing inventory, and fulfilling orders rather than spending time chasing payments from clients.
Strengthen Supplier Relationships
Access to immediate funds allows businesses to pay suppliers on time or negotiate better payment terms, helping to maintain positive relationships and improve creditworthiness.
If your business has revenue tied up in unpaid receivables, stop playing the waiting game
with your customers and get fast access to funding with Single Point Capital.
with your customers and get fast access to funding with Single Point Capital.
Distribution Companies We Serve
Distribution companies across all sectors can benefit from our services. Whether you manage wholesale distribution, supply chain logistics, or retail distribution, we offer financing solutions tailored to support your operations and cash flow needs.
- Wholesale Distributors
- Warehouse & Fulfillment Services
- Supply Chain & Logistics Providers
- Retail Distributors & Merchandisers
- Product Importers & Exporters
- Food & Beverage Distributors
- Medical Supplies & Equipment Distributors
- Consumer Electronics Distribution
- Automotive Parts & Accessories Distribution
- Industrial & Commercial Equipment Distributors
Our financing options help ensure that your distribution operations continue to run smoothly and efficiently, even with extended payment cycles.
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Account Management Portal
Built to Support Your Business
Our Account Management Portal offers transparent, easy access to all your account details in one place. With a user-friendly interface, you can manage your business with ease, track your finances, and stay on top of all transactions—whenever and wherever you need it.
- 24/7 secure access overview of your account
- Access to a variety of reports to help you manage your business
- View all transactions that have been completed 100% transparency for your peace of mind
Frequently Asked Questions
About Distribution Factoring
What is factoring for distributors and wholesalers, and how does it work?
Factoring for distributors and wholesalers is a financial solution that helps businesses improve cash flow by selling their unpaid invoices to a factoring company. Instead of waiting 30, 60, or even 90 days for customer payments, factoring allows businesses to receive an advance on their invoices-typically up to 90% of the invoice value-within 24 hours. The factoring company then collects payment from the customer and sends the remaining balance, minus a small fee. This helps wholesalers and distributors maintain steady cash flow to purchase inventory, cover operating costs, and grow their business.
How can invoice factoring improve cash flow for my distribution or wholesale business?
Invoice factoring provides immediate working capital by converting outstanding receivables into cash. This allows wholesalers and distributors to:
- Purchase more inventory without waiting for customer payments.
- Take advantage of bulk discounts from suppliers.
- Cover payroll, rent, and other operating expenses without financial strain.
- Expand business operations by investing in new markets or products.
- Avoid debt-unlike loans, factoring doesn't require collateral or monthly repayments.
What are the requirements to qualify for wholesale and distribution factoring?
Most factoring companies have simple qualification criteria for wholesalers and distributors, including:
- B2B (business-to-business) invoices with creditworthy customers.
- Unpaid invoices with net terms of 30+ days.
- A business that is free of liens or can obtain lien subordination.
- Consistent invoicing with verifiable transactions.
Factoring is ideal for startups, growing businesses, and companies with cash flow gaps, as approval is based more on customer creditworthiness than the business's credit history.
How much does factoring cost for distributors and wholesalers?
Factoring fees vary based on factors like invoice volume, customer creditworthiness, and industry risk, but typically range from 1% to 5% of the invoice amount. Some key pricing factors include:
- The advance rate (percentage of the invoice paid upfront, usually 80-90%).
- The factoring fee structure (flat fee vs. tiered rates).
- The length of time it takes for the customer to pay.
- Additional services such as credit checks, collections, and back-office support.
Factoring is often more cost-effective than traditional financing because it provides fast cash without taking on debt.
What are the benefits of using factoring over traditional business loans for wholesalers?
Factoring offers several advantages over business loans and lines of credit, including:
- Faster approval-factoring can be set up in days, while loans take weeks or months.
- No debt-factoring advances cash from unpaid invoices rather than creating new liabilities.
- Flexible funding-the more invoices you generate, the more cash you can access.
- No collateral required-factoring is based on your customers' credit, not yours.
Improved financial stability-consistent cash flow helps wholesalers avoid supply chain disruptions and take advantage of growth opportunities.
