Wholesalers and distributors often pay suppliers, freight, storage and payroll before business customers pay their invoices. Growth can increase sales and cash pressure at the same time. This guide explains how to map the order cycle, calculate landed cost and margin, compare potential funding paths and prepare records that clearly show how the request will be repaid.
Map the supplier to customer cash cycle
Place supplier deposits, balance payments, production, freight, customs, warehouse arrival, customer delivery, invoicing and expected collection on one timeline. The funding need should cover the actual gap rather than an estimated sales total.
Separate confirmed customer orders from forecasts. Review order quantity, cancellation rights, delivery terms, acceptance requirements, returns and customer payment terms before committing to inventory.
The CashMigo wholesale and distribution funding page provides a focused starting point for supplier orders, inventory, freight, payroll and receivables needs.
Calculate landed cost and gross margin
Build the complete landed cost for each order, including product, packaging, inspection, duties, freight, insurance, storage, handling and returns. Compare that total with the expected selling price and customer allowances.
Test the transaction with higher freight, a supplier delay, damaged units, slower sales and a late customer payment. A margin that only works under the original best case may not safely support a financing payment.
Estimate how much inventory must sell and be collected before principal, fees and operating costs are covered. Sales volume alone does not show whether the order produces enough cash.
Tell CashMigo what the business needs, how much and how soon. We will review the request and help identify potential next steps.
Check My Funding Options →Understand inventory and concentration risk
Review inventory aging, turnover and sell through by product. Slow, obsolete, seasonal or specialized inventory may receive different treatment than goods with dependable demand and a broad resale market.
Measure the percentage of revenue and receivables tied to each customer. A strong customer can improve invoice quality, but heavy concentration means one delay, dispute or lost account can materially affect the business.
Supplier concentration matters too. Document alternate sources, lead times, minimum order quantities and the effect of price or delivery changes on the business plan.
Compare the funding paths
A business line of credit may fit repeat inventory and supplier purchases when the wholesaler qualifies and each draw has a clear repayment source. Review draw fees, access rules, renewal terms and how repayments restore availability.
Invoice factoring may help after eligible goods are delivered or accepted and invoiced to a qualifying business or government customer. Confirm advance rate, reserve, fees, recourse, verification, customer notice and contract requirements.
An asset based revolving line may fit an established company with eligible receivables, inventory or other business assets. Borrowing base reports, field reviews, collateral controls and covenants may apply.
Prepare supplier, inventory and receivables records
Useful starting records may include recent business bank statements, financial statements, current debt schedules, supplier quotes, purchase orders, inventory reports, customer orders and accounts receivable and payable aging.
Match quantities, dates and totals across supplier orders, customer orders, invoices, inventory records and bank activity. Explain unusual transactions, returns, disputes, chargebacks, delayed shipments or a recent customer loss honestly.
Protect confidential information. Do not place bank credentials, Social Security numbers, customer account details or sensitive documents in a general website form. Use an approved secure channel if detailed records are requested.
Test the obligation against conservative collections
Place the proposed payment into a weekly and monthly forecast that includes supplier payments, freight, warehouse costs, payroll, rent, taxes, current financing and ordinary operating expenses. Delay one major customer payment and test whether essential obligations remain covered.
Compare net proceeds, total cost, payment amount and frequency, term or expected duration, collateral, liens, guarantees, reporting duties, early payoff treatment, defaults and renewal conditions. The best fit is based on usable cash and repayment capacity, not only the approved amount.
Wholesale businesses can share non sensitive starting information through the 60 second funding check or call 1-844-617-CASH. Approval, amount, cost and timing depend on the complete application and provider review.
Frequently asked questions
Can wholesale inventory be funded?
Potentially. Eligibility and structure may depend on the applicant, inventory, supplier terms, margins, operating history, repayment source and provider.
Can a wholesale invoice be factored?
Potentially, when goods have been delivered or accepted, the invoice is valid and undisputed, and the business or government customer meets the provider's requirements.
What is customer concentration?
It is the percentage of revenue or receivables tied to one customer or a small group of customers. High concentration can increase risk if a major customer pays late or stops buying.
What is inventory turnover?
Inventory turnover describes how quickly inventory is sold and replaced. Providers may review aging and turnover to understand liquidity, demand and the risk of slow or obsolete goods.
What records should a wholesaler prepare?
Useful starting records may include recent bank statements, financial statements, supplier and customer orders, inventory reports, accounts receivable and payable aging, current obligations and a clear use of funds plan.
