Invoice finance guide
Invoice finance for wholesale businesses
Wholesalers can be squeezed between supplier payments, stock purchases and trade customers paying on 30, 60 or 90 day terms.
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Why wholesalers search for invoice finance
A wholesaler may need to buy stock, hold stock and deliver goods before customer invoices are paid. If the debtor book grows, cash can be tied up even when sales are healthy.
Invoice finance may help where invoices are raised to creditworthy trade customers and the goods or services have been delivered.
What lenders may consider
Lenders may review debtor quality, returns, credit notes, customer spread, export exposure, stock cycle, supplier pressure and bank conduct.
If stock finance or trade finance is also relevant, the invoice position still needs to be explained clearly.
Documents that help
Useful documents include aged debtor reports, sample invoices, customer terms, supplier position, bank statements, management accounts and details of any returns or disputes.
How Jolt makes the next step easier
You do not need to know the perfect lender at the first step. Jolt looks at the funding purpose, timing, documents and likely route, then helps shape the enquiry around lender appetite.
Start with the amount, what the money is for and how quickly it is needed. If the route is not obvious, the enquiry can still be reviewed without turning this page into another form.
Invoice finance for wholesale businesses FAQs
Is invoice finance common for wholesalers?
It can be relevant where the business sells to other businesses on credit terms and needs to release cash tied up in unpaid invoices.
Do returns and credit notes matter?
Yes. High returns or frequent credit notes can affect how much of the debtor book a lender is comfortable funding.
Can export invoices be included?
Some lenders may consider export debt, but country, currency, customer and payment risk matter.
What should a wholesaler prepare?
Aged debtors, sample invoices, customer terms, bank statements, accounts and details of disputes or returns are useful.