Wholesalers face many cashflow difficulties from the ability to buy goods upfront to having to offer significant payment terms to customers. Factoring or Invoice Discounting will allow a wholesaler to release funds tied up in their unpaid invoices. This money can then be invested into the business to buy more products and make more money! Factoring isn’t an expensive option so although you will lose a small % of your overall margin it will allow the business to continue to grow and fulfil orders with no cashflow concerns. This is how it works:
Need funding sooner? Invoice Finance is a great cashflow tool to help finance the back end of a businesses supply chain, however it may not always be suitable as funding can be required sooner. Trade Finance will support a business's supply chain by helping with the upfront costs of paying suppliers on a business's behalf. A trade finance specialist can also help with minimising currency fluctuations and support with the complications of importing goods into the UK.
