The Pinch Points
Why Industrial Distributors Come to Us Instead of Their Bank
Industrial supply is recurring and sticky, but the stocking cost lands all upfront — and your bank wants two years of audited financials. Sound familiar?
VMI Setup, All Upfront
A manufacturing plant wants you to manage their VMI program — $80K initial stocking across 2,000 SKUs. They consume $25K/month but the setup cost is all upfront.
Supplier Minimum Jumped
Your cutting-tool supplier raised minimum orders from $30K to $60K. The extra volume gets you into a better pricing tier that saves 8% annually. But you need the cash now.
Three New Accounts to Stock
Three new accounts signed this quarter — $45K/month in recurring orders. Initial stocking across all three costs $90K and they all pay net-30.
Competitor Closed, Accounts Calling
Your main competitor just closed. Their 15 biggest accounts are calling you — $120K/month in potential revenue. But onboarding them requires $200K in immediate inventory across fasteners, abrasives, and safety products.
Vending on the Plant Floor
A steel plant wants you to install vending machines for PPE and cutting tools on their floor — $55K for 8 machines plus initial stocking. The machines auto-reorder and generate $9K/month in recurring revenue.
Consignment You Own Until They Pull It
Going VMI for a national account means you own the consignment inventory on their floor — $120K in stock you’ve paid for that doesn’t bill until they pull it, bin by bin.
What an operator said
“A competitor folded and their plant accounts came to us overnight — we needed $90K in stock and eight vending units installed in two weeks. Funding put us on their floor before anyone else bid.”
Tom R. · industrial supply · Akron, OH
Start Here
See Your Range in 60 Seconds
No credit check, no documents to start, and an estimated funding range on the spot. No one contacts you until you’re ready to move forward.
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
Built for the Trade
What We Fund for Industrial Distributors
Fund VMI & Contract Stocking Up Front
A vendor-managed or new-account program is all stocking cost before the recurring POs start — we fund the setup so the recurring revenue is yours, not the contract you had to pass on.
Hit Supplier Minimums & Pricing Tiers
When a supplier raises the minimum to hold your discount tier, working capital funds the larger buy — and the tier it protects pays for the financing.
Deep Inventory Without the Cash Drain
Manufacturing accounts expect same-day on fasteners, abrasives, and PPE — a revolving line keeps the shelves deep so a small stockout doesn't send them to a competitor.
Vending Rigs & Delivery, Section 179
Plant-floor vending units, delivery vans, and racking — a fraction down with the equipment as collateral, full first-year write-off, the recurring revenue carrying the payment.
Match Your Situation
The Cash-Flow Gaps We Fund for Industrial Supply
Match your situation to the structure. Every one of these funds on your revenue, not a perfect credit file.
| What It Looks Like | Funding Solution | Amount | Speed | |
|---|---|---|---|---|
| Steel/commodity price lock-ins | Steel prices are at a 6-month low. Buying $200K in fastener stock now saves $40K when prices normalize. But the buy window closes in two weeks and your cash is tied up in existing inventory. | Working Capital | $75K–$300K | 1–3 days |
| Large project order fulfillment | A steel manufacturer needs $120K in cutting tools, abrasives, and safety gear for a plant expansion. They pay net-30 but you need the inventory before the first delivery. | PO Financing | $75K–$500K | 3–5 days |
| Fleet delivery truck replacement | Your delivery fleet is aging and breakdowns cost you same-day delivery promises. Two new box trucks at $45K each keep your manufacturing clients from calling a competitor. | Equipment Financing | $75K–$250K | 3–7 days |
| Warehouse racking expansion | You won three new VMI contracts but your warehouse shelving is maxed out. New pallet racking, mezzanine flooring, and bin systems cost $60K to install. | Equipment Financing | $75K–$200K | 3–7 days |
| New territory expansion | Your main competitor in the next county just closed. Their 15 biggest accounts are calling — $120K/month in potential revenue. But onboarding them requires $200K in immediate inventory. | Working Capital | $75K–$400K | 1–3 days |
The Products
How Industrial Supply Financing Is Structured
Most industrial and MRO distribution files fund between $75K and $5M+, structured to the contract or inventory in front of you. Larger lines available when revenue, cash flow, and story qualify.
| Amount | Term | Best For | Funding Speed | Typical Structure | |
|---|---|---|---|---|---|
| Working Capital | $75K–$5M+ | 6mo–10yr | VMI stocking, new-account inventory, payroll | 1–3 days | Often unsecured, daily/weekly ACH |
| Business LOC | $75K–$5M+ | Revolving | Deep-SKU restock across fasteners, abrasives, safety | 1–5 days | Unsecured line, no PG by default |
| Invoice Factoring | $75K–$5M+ | Per invoice | Net-30/60 manufacturer receivables | 1–2 days | Invoices secure the line, no PG typically |
| Equipment Financing | $75K–$5M+ | 3yr–7yr | Forklifts, racking, delivery fleet, vending | 3–7 days | Equipment serves as collateral |
Tax Strategy
Section 179 on Forklifts, Racking, and a Delivery Fleet — Worked
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, that first-year deduction can return meaningful tax savings — and for an established business with strong cash flow, it’s the difference between writing a check to the IRS and putting the same money into your own equipment. Your CPA models the exact numbers for your bracket and structure.
Worked scenario · top bracket · illustrative
You financed the machine and put down a fraction of its price — but you deduct the full price in year one. The write-off is bigger than your down payment, and the equipment keeps working the whole time.
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
“Industrial supply is a fill-rate business — the account goes to whoever can rack it deep and get it on the truck same day. That $225K in forklifts, racking, and route trucks is the line between winning the VMI contract and quoting it. Put a fraction down, finance the rest, and §179 writes off the full $225K the year it's filling orders. The warehouse that wins the account and the tax move, one year.”
Bobby Friel · Founder · 20+ years in banking and finance
How It Works
From Application to Funded
One application, 70+ lenders competing, a dedicated specialist, and most files funded in days.
60-second estimate
Enter your numbers — no credit check, no documents. You see an estimated funding range on the spot.
A specialist is assigned
A real funding specialist — not an algorithm — reviews your file, usually within 24 hours.
70+ lenders compete
Your application goes to the marketplace. Competing offers typically land 24–48 hours later.
You pick the offer
Compare structures and terms with your advisor. No obligation until you choose to sign.
Funded in days
From same-day working capital to a multi-piece stack, most files fund in days — not the bank’s 60–90.
Underwriting
What Underwriting Looks At
Funding here leads with what your business actually does — your revenue and cash flow. The specialist desk reads the real picture from your statements, then matches it to the lenders most likely to fund it.
How you’re evaluated
Revenue-first
sized off your top line, not just your balance sheet.
Cash-flow driven
your bank statements show how the business really runs.
Bank-statement underwriting
even a down year is read off 4 months of statements.
Story-driven
a big new contract, a seasonal swing, a turnaround in progress: context the raw numbers miss counts too.
What to have ready
↳Had a loss year? It’s read off the bank statements — 4 months, not 6.
Start fast, finish complete
The operators who fund quickest come to the specialist review with these ready — but you don’t need all of it to start. Your signed application and bank statements are what unblock the review; the rest can follow as trailing docs. Real term sheets come once the lenders can see a true business overview, so the move is simple: get the application and statements in right away, and don’t let a missing tax return hold up your term sheets.
Credit, straight
Qualification
Who Gets Funded — and Who’s Not Ready Yet
A straight read saves everyone time — here’s the line between an industrial supply file that funds and one that isn’t ready yet.
↳Time in business is a factor, not a gate — newer crews with strong revenue still qualify.
Not ready yet isn’t a no — it’s a checklist. Most of it is fixable in a quarter or two, and your advisor will tell you straight which gaps to fix before a file goes in.
The Operator's Guide
Industrial & MRO Supply Distribution Financing
Deep Inventory Is the Cost of Entry
Industrial supply is a different animal. You're carrying 10,000+ SKUs — fasteners, abrasives, cutting tools, safety products — and your manufacturing clients expect same-day delivery on all of it. One stockout and they call your competitor. That means $200K to $500K tied up in inventory at any given time, and when a new VMI contract lands, the stocking cost is all upfront. We've funded $80K VMI setups in 36 hours flat.
One Application, 70+ Lenders
Here's what banks don't get about industrial distribution: your revenue is recurring and sticky. A manufacturing plant that puts you on VMI doesn't switch suppliers over a nickel. But banks see $300K in inventory and get nervous, while our 70+ lenders see the recurring revenue behind it. A $15K supplier order or a $1M inventory build — 60 seconds to apply, soft-pull review to start.
Common Questions
Industrial Supply Financing — Questions, Answered
Yes. Working capital and lines of credit fund vendor-managed inventory setups with no restrictions. An $80K VMI stocking for a manufacturing client generating $25K/month recurring has clear underwriting appeal. Funded in 24–48 hours.
Pair a working line for inventory with equipment financing for the forklift, structured together and sized on your revenue and your net-terms receivables. Soft-pull review to start.
Working capital and lines of credit cover increased minimum orders. A line of credit is ideal — draw when minimums increase, repay from customer sales. Maintains your pricing tier without cash strain.
Yes. A working line or A/R financing bridges the net-terms gap so supplier payments and stock don't stall while you wait to get paid.
Working capital funds initial stocking for new accounts in 24–48 hours. Lines of credit provide ongoing restocking flexibility. Invoice factoring advances against net-30 manufacturer receivables for immediate cash.
No. Soft credit pull only — zero FICO impact.
Recommended Funding
The Products That Fit Industrial Supply Work
Working Capital Loans →
Fund VMI stocking for manufacturing contracts and absorb supplier price increases.
Invoice Factoring →
Convert net-30/60 industrial client receivables into cash for ongoing inventory.
Business Line of Credit →
Draw for deep-SKU inventory across fasteners, abrasives, and safety products.
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