Invoice Factoring for Wholesale Businesses

Wholesale distributors ship large orders to retailers and other businesses that routinely pay on 30, 60, or 90-day terms, while suppliers and warehouse costs still need to be paid now. Invoice factoring converts unpaid customer invoices into immediate working capital instead of waiting out those payment terms.

Why factoring fits wholesale specifically

You sell your outstanding invoices to a factoring partner at a discount and receive a large portion of the invoice value upfront; the factoring partner then collects directly from your customer. Because approval is often weighted toward your customers’ creditworthiness rather than just your own, factoring can work well when your buyers are larger, established retailers or businesses with slow but reliable payment cycles.

Common uses for wholesale businesses

• Covering supplier and warehouse costs while a large order is still outstanding
• Taking on a bigger order without waiting on existing receivables to clear
• Smoothing cash flow around long customer payment terms

What to expect

Commonly requested items include your outstanding invoices, accounts receivable details, and information about your customers. Your funding specialist will confirm the full requirements for your matched program.

Frequently asked questions

What percentage of the invoice do I receive upfront? This varies by program and factoring partner — your funding specialist will confirm the specific terms once matched.

See the full Invoice Factoring product page, or explore funding options for the wholesale industry.