Why do distributors need funding?
Because inventory is paid for before it is sold and customers often pay on terms. A distributor can be growing and still short on cash, since each new order ties up more money in stock and receivables.
Common triggers include a bulk purchase at a good price, a supplier requiring earlier payment, a new customer on long terms, or a seasonal build before peak demand.
| Option | Best for | Watch for |
|---|---|---|
| Working capital | A specific inventory purchase or deal | Repayment pace against sell-through |
| Line of credit | Recurring gaps and buying opportunities | Balances that creep up |
| Revenue-based financing | Sales that swing by season | Total payback; read it in dollars |
How do I size the funding?
Estimate the cash tied up between paying the supplier and collecting from customers, then add a buffer for slower collections. Fund that gap, not total annual sales.
If a bulk deal saves money, compare the savings to the cost of funding it. See bulk inventory purchase funding, closeout inventory financing and funding an early-payment discount for worked-through examples.
What do I need to apply?
Recent bank statements, your business registration and a clear description of the purchase or gap. Time in business and monthly revenue shape what is available.
Choose the payment you can cover in a slow month, and ask for the full repayment in writing. For a closer look at the business model, see wholesale distributors.
Updated October 24, 2026 · Prime Funding Now Funding Team
Frequently asked questions
Can a distributor fund a single large inventory purchase?
Yes. Working capital is often used for a specific purchase or deal.
Is a line of credit better than a one-time funding?
A line of credit fits recurring gaps; one-time funding fits a single purchase.
Can I finance inventory I have not sold yet?
Funding is based on your business, revenue and the purchase. Apply with your real figures.
Does applying commit me to an offer?
No. You can review and decline.