Buy More Stock, Sell More Product
Wholesale is a timing problem. You pay the supplier now, extend 30 to 60 day terms to your buyers, and the gap in between is where cash disappears. Stock finance and invoice finance exist to close that gap so you are not turning down orders because your working capital is still locked in the last shipment.
£500bn
UK wholesale sector value
120,000+
Wholesale businesses in the UK
Volume buys you margin, but volume needs cash you may not have sitting idle. A distributor buying from an overseas supplier often pays pro-forma or via letter of credit before the container has left port. The goods arrive, get sold to trade customers on credit terms, and then you wait again. We are a broker, so we place stock finance and trade finance with lenders who understand this cycle rather than lending ourselves. Advance rates on stock usually sit around 50 to 70 per cent of stock value, depending on how liquid and saleable the goods are. Invoice finance against your debtor book can release up to 85 to 90 per cent of the invoice value within a day of issuing it. No broker can promise a specific rate or facility size, because the lender sets that against your debtors, your suppliers, and your trading history. Our job is to find the lender whose appetite fits how you actually trade.
Common Challenges in Wholesale & Distribution
Paying suppliers before the goods sell
Overseas suppliers regularly demand payment upfront or a letter of credit before shipment. That money is locked away for weeks while the goods are in transit, and you still have orders to fulfil in the meantime.
Customer credit terms compress your cash
Offering 30 or 60 day terms is standard in wholesale. By the time your customer settles, you have usually already paid your supplier and reordered. The larger your turnover, the wider that funding gap runs.
Seasonal stock builds
Many categories front-load inventory ahead of peak demand, whether that is Christmas ranges, construction materials before spring, or PPE before contract renewals. A single large buy can drain a facility or a bank balance at exactly the wrong moment.
Storage and handling capital
Growing stock volumes need space. Racking, forklifts, and extra warehouse capacity are asset purchases that compete directly with working capital unless they are financed separately.
Finance Solutions for Wholesale & Distribution
We work with specialist lenders to find the right product for your business.
Stock Finance
A revolving facility where the lender funds your stock purchase and you repay as you sell. Advance rates typically run 50 to 70 per cent of stock value. It works best where stock is identifiable, saleable, and not perishable.
Learn moreTrade Finance
The lender pays your overseas supplier directly or issues a letter of credit, and you repay once the goods arrive and sell. This takes the upfront payment risk out of import orders and can extend your effective credit terms with international suppliers.
Learn moreInvoice Finance
You issue an invoice to your trade buyer and draw down up to 85 to 90 per cent of its value the same day. The facility grows with your turnover, so it scales in line with how fast you are actually selling.
Learn moreAsset Finance
Fund forklifts, pallet racking, and warehouse handling equipment on hire purchase or lease, so the capital cost does not land on your balance sheet as a one-off cash drain.
Learn moreWork out your numbers
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Frequently Asked Questions
What is stock finance and how does it work?
Stock finance is a revolving credit facility secured against your inventory. The lender advances a percentage of the stock value, usually 50 to 70 per cent, and you draw it down when you buy and repay as you sell. It turns with your purchasing cycle rather than sitting as a fixed loan. Lenders will want to understand your stock profile: how fast it moves, whether it is branded or generic, and whether there is a secondary market if they ever needed to realise it.
Can trade finance work for regular import orders, not just one-off purchases?
Yes, and that is usually where it makes the most sense. If you import on a predictable schedule, a trade finance facility can sit in the background and activate each time you place a purchase order. The lender pays the supplier, the goods ship, and you repay on an agreed schedule once you have had time to distribute and collect. In practice it engineers credit terms with suppliers who will not give them to you directly.
What does a lender actually look at when assessing a wholesale business?
The main factors are your debtor quality (who your trade customers are and how reliably they pay), the nature of your stock (liquid and saleable beats bespoke or perishable), your trading history, and your management accounts. A lender advancing against invoices will often want your aged debtor report; one advancing against stock may want an independent valuation or a schedule of what you hold. No broker can guarantee approval or a rate. What we do is put the application to the lenders most likely to say yes for your specific business.
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