Invoice Factoring for Distribution Companies
Why Wait to be Paid?
Slow-paying clients can really strain cash flow for distribution companies. Distribution companies face many upfront costs. Distributors typically pay suppliers upfront. Not to mention, distributors also cover the upfront cost of shipping the goods to their clients. When clients pay on 30, 60+ day terms, it can make it tough for distribution companies to take on new orders. Instead of waiting to be paid, invoice factoring provides distributors a cash advance of up to 95% of the invoice amount within 24 hours.
Distribution Factoring Benefits
- Fill larger customer orders with ease
- Capital to pay suppliers for products
- Cash to buy products in bulk
- Funding to cover transportation costs
- Ability to take advantage of early pay discounts
- Offer more generous payment terms to clients
- Funding to add new products and expand inventory
Thanks to invoice factoring for distribution companies, you’ll be able to pay your suppliers early without the stress of waiting for clients to pay.
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Invoice Financing for Distributors
Here’s How Factoring Works:
- Submit invoices to the factoring company
- The factoring company verifies invoices and advances you the cash within 24 hours (up to 95%)
- The remaining 5% is held in a reserve account
- The factoring company collects from your clients on the terms you already have in place
- The amount held in reserve is released back to you, minus a small factoring fee
We understand that stable cash flow is critical for distributors. Let us help you speed up your cash flow & grow your business. Contact us today for a free, no obligation quote.Contact Us
Get Paid Sooner
Get paid within 24 hours by factoring invoices. Contact us to get a free quote!
Funding Options for Distributors
Invoice factoring is not a loan. It’s simply a cash advance on your outstanding invoices. This means there won’t be any debt to repay. Additional advantages of factoring include:
- No long term contracts
- Free credit checks on potential clients
- No setup fees
- Easy approval
- Less than perfect credit is OK
- No monthly minimums
Additional types of funding for distributors are also available. Purchase order financing and unsecured business loans can also provide distribution companies the funding they need to grow & accept larger orders.