In retail, products and services operate within tight schedules and long cycles. For distributors, this can mean a slow turnaround for their outstanding invoices. Though the demand for new inventory may be high, many distributors and wholesalers must wait up to three months to get paid for their services. With invoice factoring, distribution companies can reduce the gap between service and payment.
Overhead costs can eat up a significant portion of your operational budget if you’re a distributor or wholesaler. Without immediate payment on your invoices, it can be difficult to manage these expenses. You can stay up to date on your budget and become a fierce competitor in the industry with our wholesale distribution factoring services. At Porter Capital, we help companies like yours eliminate their cash flow gap through efficient invoice factoring for distributors.
What Is Factoring for Distribution and Wholesale?
Invoice and accounts receivable factoring help businesses shorten the wait time between production and payment. Factoring can be a valuable tactic to increase cash availability 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, factoring services are common practice in the distribution industry. For more than 30 years, Porter Capital has offered payroll and inventory financing for distribution companies. 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.
Benefits of Factoring for 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, better inventory, machinery and everyday costs.
Porter Capital invoice funding assists distribution companies with any outstanding payments. Our services 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!
How Porter Capital Offers Financing for the Distribution Industry
The team at Porter Capital is happy to help your business with its outstanding invoices, no matter how large your company or how long you’ve been around. Our factoring services offer low rates and long-term assistance for those within the 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 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.
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 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!