Wholesale payment terms: the problem with waiting 30+ days to get paid
Wholesale companies typically offer net terms requiring payment after 30, 60, or 90+ days. This creates cash flow challenges, making it difficult to cover payroll, marketing, and inventory purchases. Without financing options, businesses may need to enforce stricter payment terms or raise prices to compensate.
What is wholesale invoice factoring?
Wholesale invoice factoring is a financing method that allows businesses operating in the wholesale distribution industry to convert their unpaid invoices into immediate cash. It's a form of accounts receivable financing where a company sells its invoices to a factoring company at a discounted rate in exchange for immediate payment — serving growing businesses that need quick working capital and helping bridge seasonal revenue gaps.
How wholesale invoice factoring works
From delivery to payment, here's what the process looks like with FundThrough.
Invoice generation
Deliver goods or services and generate your invoice as usual.
Invoice submission
Submit your unpaid invoices to FundThrough.
Verification and approval
FundThrough verifies your invoices and assesses your customer's creditworthiness.
Funding
We advance 100% of the invoice value, minus a transparent fee.
Collection and payment
FundThrough handles collection; your obligation ends when your customer pays.
Wholesale factoring use cases
Why wholesalers choose FundThrough
- 100% advance rates
- Accounting integrations with QuickBooks and OpenInvoice
- Fast funding, in days
- Transparent fees, no surprises
- Better terms with your suppliers
- No debt, no dilution
- Less administrative burden
- No bank hassles
Ready to get your invoices paid early?
Get started nowFAQs: Accounts Receivable Financing for Wholesalers
Most factoring companies work with most industries, but not all do. FundThrough has extensive experience working with wholesale distributors.
Advance rates typically range from 60% to 100% of the invoice value. FundThrough advances 100%, minus a single, transparent fee.
Discount rates typically range from 1% to 5% of the invoice value. Watch out for hidden fees like application or service charges on top of the discount rate.
FundThrough doesn't require minimums or long-term commitments. Only fund the invoices you want, when you want.
With invoice finance, you're advanced payment and you repay the lender yourself, managing your own collections. With wholesale invoice factoring, a factoring company advances payment for your invoice ahead of net terms, minus any fees, and manages collections on your behalf.
Typical rates for distributor factoring vary, but generally range from 1% to 5% of the invoice value per month.
Generally, you'll need: outstanding invoices to one creditworthy customer, B2B transactions, invoices for completed work with an expected due date, no liens on receivables that can't be removed, and no construction or real estate business.
With recourse factoring, your business retains the risk of non-payment. With non-recourse factoring, the factoring company assumes credit risk, typically for a higher fee.
Does the factoring company work with wholesale providers?
Most factoring companies work with most industries, but not all do. FundThrough has extensive experience working with wholesale distributors.
Our approach to working with different industries
FundThrough pays invoices in days for industries outside of this list as well.