PO Funding & Invoice Factoring for the Wholesale Industry
Factoring & PO Funding for Importers, Jobbers, Distributors & Wholesalers
Does Factoring Work for Wholesalers?
Bankers Factoring offers wholesalers, jobber, resellers, importers, and wholesale companies a steady stream of working capital through the non-recourse factoring of their account receivables. We also offer purchase order funding if you need monies to buy the goods before shipment to your B2B or B2G customers. We understand that waiting months for the payment of an invoice ties up your working capital. By receiving payment immediately upon invoicing, you will have the money to meet payroll, grow your company, and pay suppliers.
Our financing options of Purchase Order Financing and Accounts Receivable (A/R)/ Invoice Factoring services fit the needs of wholesalers and importers to a tee. Why? Because wholesalers usually struggle with cash flow. The middleman business can be in constant flux when it comes to funds going in and out. Wholesalers being the go-between for manufacturers and end-users are buffeted by the net 45-120 day terms of 2021.
PO Funding & Invoice Factoring For Wholesalers
If you’re a wholesaler, then you’ve experienced the struggle of balancing income and expenses at any time. You have to deal with payment delays due to extended 90 day payment windows. You also felt pressured by payroll demands and overhead costs. There are also seasonal downtimes in the business that makes it difficult to maintain working capital. Not to mention the pressure you get from manufacturers who demand payment in advance.
Add the headaches of pandemic-related supply chain bottlenecks, and this is not an easy time for the distribution businesses. You have creditworthy customers, but with extended credit terms, traditional banks and other conservative financial institutions can’t offer working capital like invoice financing or distribution factoring can.
The reasons stated above are why PO Funding and Invoice Factoring for wholesalers works. With these financing solutions, the only thing you need to worry about is delivering your promises to your customers. And Bankers Factoring provides the much-needed working capital in less than 24 hours once you are set up with us.
PO Funding and Non-Recourse Factoring for Distributors lets you safely grow your business with better profit margins if used correctly. Our trade financing program also ensures you can keep your foreign suppliers under control with relatively small monthly minimums.
The main difference between accounts receivable financing and purchase order funding is when each is utilized in the process. Invoice factoring is used after a business sells the goods or services. PO financing, available only to businesses that sell physical goods, is used before you can generate a factorable invoice.
To qualify Your Distribution Company for PO financing you must:
- Sell to B2B or B2G Customers
- Your minimum gross profit must be at least 20%
- Have experience with similar products and comparable clients
- Transactions per month of no less than $50,000
- Provide qualified purchase orders or letters of credit from your customers