The Pinch Points
Why Medical Supply Distributors Come to Us Instead of Their Bank
Medical supply has the best recurring revenue in wholesale — and the most brutal entry cost. Contract stocking is all upfront, the hospital pays net-60 through its GPO, and surge demand hits without warning. Sound familiar?
Hospital Contract, Net-60 GPO
A hospital system awarded you a supply contract — $50K/month recurring. Initial stocking and compliance setup cost $120K, and they pay net-60 through their GPO.
Flu-Season Surge
A flu-season surge doubled demand for PPE and diagnostic supplies. You need $80K in emergency inventory, and manufacturers want prepayment during shortage conditions.
FDA Tracking Mandate
FDA requires a recall-ready inventory tracking system. Implementation runs $35K including software, barcode infrastructure, and training.
Surgery Centers, 8 Locations
A surgery-center chain wants sterile instruments and disposables across 8 locations — $15K/month recurring. Initial stocking and clean storage cost $65K, and they pay net-75 through their GPO.
Discontinued Line, 30-Day Continuity
Your manufacturer discontinued a high-demand wound-care line. The replacement requires new certifications and $40K in initial inventory, and customers need supply continuity in 30 days or they switch.
Allocation Means a $85K Safety Stock
A hospital system puts your category on allocation during a shortage — stay on the approved-vendor list only by pre-buying a 90-day, $85K safety stock, cash out months before the GPO reimburses.
What an operator said
“Flu season hit early and three clinics tripled their standing orders at once. A working line covered the surge buy same week — we filled every order instead of rationing.”
Susan T. · medical-supply distributor · Tampa, FL
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 Medical Supply Distributors
Bridge Net-60 and Net-90 GPO Terms
Hospital and surgery-center contracts pay through their GPO on net-60 to net-90 — A/R financing bridges the months between delivered product and the check so growth doesn't strand your cash.
Working Capital for Contract Stocking
A working-capital line funds the inventory to launch a clinic or facility contract, repaid as the net-terms invoices clear.
Business Line for Surge Inventory
A business line of credit funds an emergency or surge buy in days, sized on your contract revenue.
Storage & Delivery, Section 179
Clean and climate-controlled storage, racking, forklifts, and delivery vans — a fraction down with the equipment as collateral, full Section 179 write-off, and terms that match the asset's life.
Match Your Situation
The Cash-Flow Gaps We Fund for Medical Supply Distributors
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 | |
|---|---|---|---|---|
| Regulatory compliance costs | FDA recall-ready tracking, sterile storage upgrades, and new-product certifications run $35K–$75K. Without them, you lose your distribution license entirely. | Working Capital | $75K–$300K | 1–3 days |
| Clean and climate storage infrastructure | A surgery-center chain needs sterile instruments and climate-controlled disposables. Storage and monitoring systems cost $65K to set up before the first delivery. | Equipment Financing | $75K–$1M | 3–7 days |
| Hospital system net-90 terms | You delivered $150K in supplies to a hospital system. They pay through their GPO on net-90 — three months of delivered product before your first check. | Invoice Factoring | $75K–$1M | 1–2 days |
| Product certification for new lines | Your manufacturer discontinued a high-demand wound-care line. The replacement needs new certifications and $40K in initial inventory, with continuity due in 30 days. | Working Capital | $75K–$300K | 1–3 days |
| Emergency inventory surge | Flu season doubled PPE demand overnight and manufacturers switched to prepayment. You need $80K in emergency inventory now — not after a two-week bank review. | Business LOC | $75K–$1M | 1–5 days |
The Products
How Medical Supplies Financing Is Structured
Most medical-supply distribution files fund between $75K and $5M+, structured to the inventory, storage, or contract 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 | Contract stocking, surge inventory, payroll | 1–3 days | Often unsecured, daily/weekly ACH |
| Business LOC | $75K–$5M+ | Revolving | Ongoing restock, demand surges | 1–5 days | Unsecured line, no PG by default |
| Equipment Financing | $75K–$5M+ | 3yr–7yr | Clean/climate storage, racking, delivery vans | 3–7 days | Equipment serves as collateral |
| Invoice Factoring | $75K–$5M+ | Per invoice | Slow-paying hospital and GPO receivables | 1–2 days | Invoices secure the line, no PG typically |
Tax Strategy
Section 179 on Storage, Racking, and Delivery Vans — 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
“Medical-supply contracts require climate-controlled, compliant storage before you stock the first order — no rack, no contract. $115K in climate storage and fleet is the cost of being eligible. Put a fraction down, carry the rest, and the full $115K comes off this year's taxes. The storage that wins the clinic contract and the deduction together.”
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 a medical supplies 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
Medical Supplies Distribution Financing
The Best Recurring Revenue, the Brutal Entry Cost
Medical supply distribution has the best recurring revenue in wholesale. Once a hospital locks you in, that contract runs for years. But the entry cost is brutal: $120K in stocking and compliance setup before you ship a single box of gloves, and the hospital pays net-60 through its GPO. That's $170K out the door before the first check arrives. Banks see healthcare receivables and get nervous about the payment cycle. We see a multi-year contract with a high renewal rate — and we fund the stocking that wins it.
One Application, 70+ Lenders
Then there's the surge problem. Flu season hits, PPE demand doubles overnight, and manufacturers switch to prepayment. You need $80K in product now, not next week. We've funded medical-supply distributors from $75K inventory orders to multimillion-dollar contract setups. One 60-second application, soft-pull review to start, and lenders who understand how a GPO pays.
Common Questions
Medical Supplies Financing — Questions, Answered
A working line or inventory financing fronts the required stock against your revenue and the contract, repaid as the net-terms invoices clear; soft-pull review to start.
Yes. Working capital and lines of credit fund initial stocking for hospital and facility contracts, and PO financing advances against committed orders. A $120K setup behind $50K/month recurring revenue is a strong file.
Working capital funds in about 24 hours for emergency inventory, and lines of credit provide ongoing access during extended surges. Both fund fast enough to hold fill rates during critical shortages.
Equipment and technology financing covers software and hardware, while working capital covers implementation and training. A $35K compliance system protects your distribution license.
Yes. A working line or A/R financing bridges the net-terms gap so restocking doesn't stall while you wait to get paid.
No. Soft credit pull only — zero FICO impact.
Recommended Funding
The Products That Fit Medical Supplies Work
Working Capital Loans →
Stock inventory for facility contracts and fund surge purchasing during shortages.
Invoice Factoring →
Convert net-60/90 hospital and GPO receivables into immediate working capital.
Business Line of Credit →
Draw for compliant inventory and storage upgrades as contracts come online.
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