Accelerating Your Distributor Cash Flow and Revenue with Seamless Factoring Solutions
Navigating the intricate landscape of retail, distributors like you grapple with the persistent challenge of elongated payment cycles. We get it—despite a surging demand for new inventory, it feels like a marathon wait to see the return on your delivered services, sometimes stretching to an agonizing three months. But what if there’s a way to bridge this financial delay?
Overhead costs? They can swiftly devour a lion’s share of your operational budget, putting you in a tight spot, especially when those expected payments are yet to roll in. But here’s the silver lining: imagine streamlining your finances, managing expenses seamlessly, and rising as a dominant force in the distribution world. Sounds promising? That’s precisely where we come in.
At Porter Capital, we’re not just another financial service. We are your partners in progress. Dive into the world of invoice factoring with us, specifically tailored for vibrant distributors and wholesalers like you. You’re looking for the best invoice factoring company, so let’s work together to seal those cash flow gaps, propelling your business toward unparalleled success. Because your growth is our mission.
Explore our range of alternative financing solutions. Discover how our factoring company can support your business objectives and facilitate growth, whether you’re a small business or established enterprise.
Find Out More.
Distribution Deals We’ve Funded
Check out some of the deals we’ve funded for the wholesale and distribution industry below.
How Porter Capital Can Help Distributors and Wholesalers
Wholesalers and distributors work within competitive markets, so standing out as a business is an asset. With distribution factoring services you can give your clients the flexibility to pay on their schedule. Plus, you can put more funding toward vendor discounts and better inventory, or toward machinery and everyday costs.
Porter Capital invoice funding assists distribution companies with any outstanding payments. Our factoring service offerings extend to be as small or large as needed, with affordable rates and simplified processing. Distributors choose invoice factoring for the following reasons and more:
- Increased security: For many businesses, better cash flow equals better stability. You can use your working capital to cover all your baseline expenses with upfront cash advances.
- Easy approval: Invoice factoring is a simple loan alternative. Applicants are often approved regardless of credit score, collateral or length of operations.
- Funding potential: Once you’re approved for our factoring services, we can take care of all your invoices. We are your no-obligation partner for as many or as few services as you need!
Distributor Factoring vs. Traditional Loans and Other Working Capital Solutions
Distributor factoring and traditional loans are distinct financial solutions, each with specific benefits and use cases. Some of the key differences are in these areas:
- Structure: Distributor factoring involves selling accounts receivable assets to a factoring company in exchange for immediate cash, while traditional loans require borrowing a fixed amount and repaying it, with interest, over time.
- Collateral: Accounts receivable factoring uses receivables as collateral, eliminating the need for additional assets. Traditional loans typically require tangible collateral, such as property or equipment.
- Approval Process: Invoice factoring decisions focus on the creditworthiness of the distributor’s customers, while loans assess the distributor’s credit history, financial health, and collateral.
Because of these differences, factoring offers numerous advantages over loans, including:
- No Collateral Requirement: Invoice factoring relies on receivables, which removes the need for specific types of collateral.
- Faster Access to Funds: Receivables financing provides quicker cash flow compared to traditional loans, which often involve lengthy application and approval processes.
- Flexibility: Factoring adapts to sales volume, allowing access to more funds as receivables grow.
Despite the benefits, there are different business factors to consider when choosing between receivable financing and loans:
- Cost: Factoring fees can be higher than loan interest rates, so evaluating cost-effectiveness is essential.
- Cash Flow Needs: Factoring is ideal for bridging gaps in cash flow, while loans suit larger, long-term funding needs.
- Control: Factoring companies may engage directly with customers, which might affect client relationships
Factoring vs. Other Working Capital Solutions
Loans are one alternative to factoring, but so are lines of credit and merchant cash advances. Compared to these two additional options, factoring is non-debt-based and aligns directly with receivables. Factoring also avoids compounding interest and rigid repayment terms.
Why Distributor Factoring Is a Preferred Option
Distributor factoring is often chosen for its simplicity and speed. Factoring enhances cash flow without adding debt, making receivable financing particularly useful for businesses with growing sales and limited collateral. Ultimately, the choice depends on your specific business needs, financial situation, and cash flow objectives.
Find the Right Financing Solution for Your Needs
What to Expect from Working with Porter Capital
The team at Porter Capital is happy to help your business with its outstanding distribution factoring, no matter how large your company is or how long you’ve been around. Our wholesale invoice factoring services offer low rates and long-term assistance for those within the wholesale distribution industry — apply once, and you’re a valued Porter partner!
When you submit your invoices to Porter Capital, we operate with urgency. We take our role seriously as a distribution factoring lender and work to deposit your advance in days. Besides our invoice and accounts receivable funding for distributors, we also offer assistance with collections, post payments, and credit.
Our Distribution and Wholesale Factoring Process
Invoice and accounts receivable factoring help businesses shorten the wait time between production and payment. Factoring can be a valuable tactic to increase cash available for distribution companies. Many distributors and wholesalers struggle with limited cash flow and long payment terms. Invoice financing helps distribution companies access their rightful payment within days.
Clients can often take 30, 60, or 90 days to fulfill your business’s invoices. During this time, you’ll need working capital to pay for inventory, production, payroll, and any other overhead expenses. For this reason, taking advantage of factoring services is a common practice in the distribution industry. For more than 30 years , Porter Capital has offered payroll and inventory financing for distribution companies, including wholesale invoice factoring for wholesalers. Here’s how we conduct the process:
- Your business submits a valid invoice to our team.
- We deposit a cash advance for up to 95% of your invoice.
- Your customer pays their invoice, which transfers to our accounts receivable.
- We return the rest of your balance, minus a small factoring fee.
Get Factoring for Your Distribution Company
Invoice factoring could help your business support itself through slower cycles and high production times in a competitive market. Distributors and wholesalers can enjoy the flexibility of immediate payment from our reliable factoring services. Choose Porter Capital as your receivable factoring company for the expertise and timeliness your company deserves.
To learn more about invoice funding for distribution companies, contact our team online or call us at 1-800-737-7344! Also, check out our factoring blog for additional insights!