# Wholesale & Distribution Business Loans

> Wholesalers and distributors live in the spread between buying inventory in bulk and getting paid by the retailers and businesses they supply. Hoss Capital matches distribution companies with funding partners who understand inventory as collateral, purchase order financing, and the net-term receivables that tie up cash between the warehouse and the customer.

## Key takeaways
- Distributors' cash is tied up at both ends — bulk inventory on the shelf and net-30 to net-60 receivables from business customers.
- Most use a mix of products: inventory financing and lines of credit for bulk buys, purchase order financing for large confirmed orders, and invoice factoring for net-term receivables.
- Asset-based lending lets distributors borrow against inventory and AR, with the limit flexing as those balances grow.
- Stocking ahead of customers' peak seasons means the biggest inventory buys land right when cash is tightest.

## Funding built for how distribution actually works

Wholesale and distribution is a margin-and-velocity business: you make money by
moving volume, but volume ties up cash at both ends. You buy inventory in bulk
(often with supplier deposits), then extend net-30 to net-60 terms to the
retailers and businesses you sell to. Between those two points, your working
capital sits in stock on the shelf and in invoices waiting to be paid.

### The options that fit distributors best

- **Inventory financing & lines of credit** — fund bulk purchases that earn
  volume discounts and keep popular SKUs in stock, without draining operating
  cash.
- **Purchase order financing** — cover supplier costs to fulfill large confirmed
  orders, repaid when the customer pays — so a big order never breaks cash flow.
- **Invoice factoring & asset-based lending** — advance cash against net-term
  receivables and borrow against inventory and AR as those balances grow.

### Real sub-segments we see

- **Food and beverage distributors** with perishable stock and tight turn times.
- **Industrial and building-products distributors** carrying heavy, high-value
  inventory.
- **Consumer-goods and import wholesalers** managing long lead times and ocean
  freight deposits.

### Seasonality and cash-flow dynamics

Distributors often stock up ahead of their customers' peak seasons — holiday
retail, spring construction, back-to-school — meaning the biggest inventory buys
come right before the biggest sales, when cash is tightest. Financing that
build-up lets you commit to volume pricing and avoid stocking out at the worst
possible moment.

### Why match through Hoss Capital

Generalist lenders often undervalue inventory and misjudge net-term receivables.
Hoss Capital routes your profile to partners that fund wholesalers and
distributors — lenders who know how to lend against stock, POs, and AR so your
cash keeps moving as fast as your product.

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Canonical: https://hoss-capital.pages.dev/industries/wholesale/