Sound Familiar?
You Have the Order. The Cash Is Stuck in the Gap.
Right now there's an order on your desk bigger than anything you've filled — the kind that turns a customer into a recurring account. To fill it you have to buy the inventory now. Your customer pays net-60. Your supplier wants net-30. That gap is real money, sitting in product on a shelf, and your bank wants six weeks to think about a line. So you either pass on the order, or you drain the cash that covers payroll and the next buy. Meanwhile the distributor down the street took the order. None of that is a sales problem — you have the order. It's capital stuck in the gap between buying and getting paid.
If the inventory for every order you could win were funded the week the PO landed — how much bigger would your accounts be by now?
Bobby’s Take
Wholesale is a cash flow business. You buy inventory 60 days before you sell it, and the bank treats the gap like a risk instead of the engine of your margin. If you're not financing that gap, you're passing on orders and leaving margin on the table. One file reaches the lenders who fund the inventory against the PO and the gap against the receivables — so the biggest order on your desk becomes the one you fill, not the one you turn down. So picture the accounts you'd be running if inventory cash never decided which orders you could take — how much more volume moves through this business?
Bobby Friel, Founder, Basecamp Funding · 20+ years in banking and finance
The Real Challenges
The Real Challenges Distributors Face — and How Funding Solves Each One
| What it costs you | What solves it | Typical range | Speed | |
|---|---|---|---|---|
| Filling a large order you can't pre-fund | A big PO needs inventory cash before the customer pays. | Purchase order financing | $250K–$5M | 3–7 days |
| Cash locked in net-60 receivables | Slow-paying retailers tie up your working capital. | Invoice factoring | $250K–$5M | Days |
| Seasonal inventory builds | Pre-buying ahead of peak season strains cash. | Inventory line of credit | $250K–$5M | Days |
| Supplier bulk-buy discounts | A deep prepay discount needs cash you don't have free. | Line of credit | $250K–$5M | Days |
| Importing a large order | Paying the supplier before the cargo sells. | Working capital + PO financing | $250K–$5M | Days–weeks |
| Adding a product line | New SKUs need initial inventory and launch capital. | Working capital | $250K–$5M | Days |
| Outgrowing your space | Acquiring your own distribution center. | Owner-occupied CRE | $250K–$20M+ | Weeks |
Larger lines available when revenue, cash flow, and story qualify.
Cargo, warehouse, and fleet coverage for your distribution business → InsuranceService365.com (29 states).
The Numbers That Matter
The Cash, Locked Between Buying and Getting Paid
15–25%
Wholesale gross margin runs this — every unfilled order is pure profit lost.
U.S. Census Bureau, Annual Wholesale Trade Survey
60–120 days
The cash-conversion cycle for distributors — cash out the door long before it comes back.
Distribution Strategy Group
20–30%
Inventory carrying costs run this much of inventory value per year — idle stock is a cost, not an asset.
Council of Supply Chain Management Professionals
Capital Stacking
One File. The Order and the Gap, Funded.
The big order is never the only thing pulling on your cash. You need inventory to fill the new PO — and you've already got six figures sitting in net-60 invoices from the last one. A bank sees one borrower and one line, capped at the riskiest thing on your books. A marketplace structures each piece with the lender who underwrites it best: PO financing against the new order, factoring against the receivables already earned, an inventory line for the seasonal build — then stacks them into the number your next quarter actually needs.
Funded against the order you're winning and the receivables you've already earned — not squeezed into a single line.
How a $1.2M quarter gets funded
PO line caps at $600K? The remainder stacks — for the full structure, see commercial financing.
Distributors We've Funded
We've Funded Distributors Like Yours
Representative scenarios — illustrative, anonymized figures, not specific client transactions.
Start Here
Find Your Structure in 60 Seconds
Move the slider for your estimated range, then answer three quick questions to lock it in. No documents to start. Soft-pull review — no score impact.
What Happens When You Start
Estimate Your Capital Range
Slide to your annual gross revenue. We size capital off your top line — not your credit score.
Estimated Capital Range
A conservative range based on 10-15% of annual revenue — many businesses qualify for more with strong receivables or assets behind them. Lenders return real term sheets once they see your file.
60 seconds · No obligation · Estimate only
What a distributor hears every week
“Wholesale is a cash flow business. You buy inventory 60 days before you sell it. If you're not using financing to bridge that gap, you're leaving money and orders on the table.”
Bobby Friel · Founder, Basecamp Funding
Why Us
Why Distributors Fund With Us Instead of Their Bank
The Real Cost
Where Could This Business Be Right Now?
The order you passed on never shows up on a term sheet — but every week the capital isn't in place, it compounds. If capital set the size of order you could take instead of capping it — where would this business be a year from now?
Structure Your Capital Plan →Tax Strategy
Section 179 + 100% Bonus Depreciation on Your Equipment
If last year was strong and you’re about to write a check to the IRS — stop. Acquire qualifying equipment with as little as 10% down, finance the rest, and write off the full purchase price in year one. Section 179 covers it up to the annual cap; 100% bonus depreciation — made permanent in 2025, with no cap and no income limit — carries the rest.
At the top bracket, a first-year deduction that size can produce tax savings that exceed the total interest cost of financing the equipment — and several times the cash you put down. For an established business with strong cash flow, that’s the difference between funding the IRS and funding your own growth. Your CPA models the exact numbers for your bracket and structure.
Worked scenario · top bracket · illustrative
You put down $26K. The first-year write-off can return more than three times that in tax savings — and you keep the equipment.
Scales with your numbers
Illustrative only. Actual savings depend on your tax bracket, entity type, state conformity, and CPA guidance. Section 179 and bonus depreciation are elections your CPA makes for your situation; above the Section 179 cap, 100% bonus depreciation carries the balance.
Terms reflect credit, revenue, time in business, and each lender. Every file is unique — see what the desk structures for yours in the 60-second qualifier.
Bobby’s Take
“If you're paying cash for forklifts and racking, run the Section 179 numbers first. Finance the equipment, deduct it, and keep your cash for inventory.”
Bobby Friel · Founder
Avoid These
5 Funding Mistakes That Cost Distributors the Most
The largest orders are the ones that grow you — passing because inventory cash is tight leaves the margin and the account on the table. PO financing funds the inventory against the order itself.
Cash locked in slow-paying retailer invoices is cash you can't put into the next buy. Factoring advances most of it now, so the next order doesn't wait on the last one's accounting.
Draining reserves to pre-buy for peak leaves nothing for the gap between buying and selling. A line funds the build and repays as you sell through.
A deep prepay discount is free margin. Passing because cash is tight costs more than the financing it would take to capture it.
Using high-cost short-term money for a recurring inventory cycle costs more than a revolving line built for exactly that.
Put It to Work
Use Your Capital For
01Fill a large orderSee howLess“What's the order you'd take tomorrow if buying the inventory first weren't on you?”
PO financing against the order itself.
Structure this02Bridge net-60 receivablesSee howLess“How much cash is sitting in invoices you've already earned?”
Factoring turns those invoices into cash without waiting on the retailer.
Structure this03Seasonal inventory buildSee howLess“What would full-scale buying ahead of peak do to your margin?”
An inventory line that repays as you sell through.
Structure this04Capture a supplier discountSee howLess“What's a deep prepay discount worth if you could always fund it?”
A line of credit for the bulk buy.
Structure this05Import a container orderSee howLess“What order could you place if paying the supplier didn't have to wait on the sale?”
Working capital plus PO financing for the cargo you own.
Structure this06Add a product lineSee howLess“What line would you add if the initial inventory were funded?”
Working capital for the SKUs and the launch.
Structure this07Acquire a competitor or bookSee howLess“What distributor or customer book would you buy if capital weren't months away?”
Revenue-based acquisition financing.
Structure this08Acquire your distribution centerSee howLess“When the lease comes up, are you signing again or buying the building?”
Owner-occupied CRE.
Structure this09Warehouse equipmentSee howLess“What's an aging forklift fleet or racking layout costing you in throughput?”
Equipment financing, Section 179 year one.
Structure this10Hire sales & warehouse staffSee howLess“What volume could you move with the team you haven't hired yet?”
Working capital for payroll ahead of the ramp.
Structure this11Consolidate high-cost debtSee howLess“What would your monthly cash look like if the high-cost advances were one payment?”
Consolidate; rate-review later — get funded now, optimize later.
Structure this12Marketing & account growthSee howLess“What accounts are you not chasing for lack of capital to serve them?”
Working capital for the expansion.
Structure thisFunding by the Size of the Need
Funded at Every Stage
One application, multiple lenders — and a file built on your orders and receivables funds in days, whether the need is $250K or $20M+.
How It Works
From Qualifier to Funded in Five Steps
No paperwork avalanche. No bank lobby. No guessing.
Qualify
A few questions about the business, right here. No documents to start.
Application
A soft credit pull and a quick document review to pre-underwrite the file.
Matched to the Right Lenders
The specialist lenders who fund your business - the right lender on each piece.
One Advisor, Real Term Sheets
Your advisor brings back real term sheets, not estimates, and walks the structure.
Structured & Funded
Accept the structure that fits, sign digitally - funded in days, not months.
For the application, have ready
Under two years in business, or the returns show a loss? We can structure on bank statements alone.
Full Transparency
What Kills Your Qualification — and What Doesn't
Most lenders won't tell you this up front. We will.
By Distribution Type
Financing by Distribution Type
Every distribution type — click yours for tailored options. Not quite a distributor? The two hand-offs at the end point you to the right hub.
Not quite a distributor? If you make the goods you sell, that's Manufacturing; if you move freight or run a warehouse for hire, that's Logistics — each funded the way that lane actually works.
Recommended Products
The Products Distributors Fund With
Matched to how the inventory cycle actually runs — and stacked into the full number when one isn't enough.
Purchase Order Financing
Fund the inventory to fill a confirmed order before the customer pays.
Invoice Factoring
Advance cash against net-30/60 receivables from slow-paying retailers.
Working Capital
Inventory buys, payroll, a new product line, an import order.
Business Line of Credit
Draw for seasonal builds and supplier discounts, repay as you sell through.
Term Loans
One lump sum for expansion or acquisition.
Equipment Financing
Forklifts, racking, packaging lines; the equipment secures the loan.
FAQs
Distribution Financing — Questions Distributors Ask
Monthly revenue, time in business, and cash-flow stability. Credit is one factor — many lenders here use revenue-first underwriting, so strong deposits can offset thin margins or a concentrated customer base.
Roughly 100–150% of average monthly deposits for working capital, more against confirmed purchase orders and receivables. Distributors with strong revenue qualify for far more, stacked across products. For acquisitions, see /loans/business-acquisition.
PO and factoring facilities can fund in days; emergency working capital can move as fast as same day. A larger capital stack typically funds in 1–3 weeks.
Yes. Purchase order financing funds the inventory to fill a confirmed order before the customer pays — the order itself supports the facility.
Factoring advances cash against specific invoices you've already earned; a line of credit is revolving capital you draw and repay for inventory builds. Many distributors use both.
Yes. With 6+ months operating and steady deposits, the revenue carries the file. Newer operations may see a down payment or a starting facility size.
Yes. Working capital and PO financing cover paying the supplier and the cargo you own; for customs and freight-forwarding services, see /industries/logistics.
No. A soft-pull review has zero impact on your FICO. A hard pull only happens if you choose to move forward with a specific lender's offer.
The Operator's Guide
Distribution Financing, the Way the Inventory Cycle Actually Runs
Why banks misread a distributor
Here's what banks miss about distribution: the gap between buying inventory and getting paid isn't a risk — it's the engine of your margin. You take title to goods, hold them, and wait net-60 on the retailer while your supplier wants net-30. A bank prices that gap like a problem. The lenders here fund it like the working business it is — against the order and against the receivables.
I talk to distributors every week who turned down the order that would've made their year because they couldn't pre-fund the inventory. That's a financing problem, and it's fixable — one application, the right structure, the inventory funded against the PO.
Every distribution type, funded around the cycle
Food and beverage, consumer goods, electronics, industrial supply, apparel, building materials, medical supplies, auto parts, chemicals, paper and packaging, janitorial, import/export — we fund all of them. PO financing to fill the order. Factoring to turn net-60 invoices into cash. An inventory line for the seasonal build and the supplier discount. Working capital for a new line. The capital matched to the cycle, then stacked into the full number. If you make the goods you sell, that's Manufacturing; if you move freight or run a warehouse for hire, that's Logistics.
If there's an order on your desk you can't pre-fund, start the review. A few minutes, soft-pull, no score impact. Most distributors hear back within hours.
