Hypothetical example: 1,200-case refrigerated lot, margin and collection worksheet
| Cost line | Basis | Lot total |
|---|---|---|
| Discounted purchase | 1,200 cases at $18.00 | $21,600 |
| Refrigerated freight | Reefer truck, one load | $1,500 |
| Cold storage until delivered | $0.55 per case | $660 |
| Landed cost | $19.80 per case | $23,760 |
| Sales and collection | Cases | Invoice | Cash arrives |
|---|---|---|---|
| Customer group A, committed | 600 | $15,900 at $26.50 | Net 14 days |
| Customer group B, committed | 400 | $10,600 at $26.50 | Net 30 days |
| Short-dated markdown | 120 | $2,280 at $19.00 | Cash on delivery |
| Unsold or discarded | 80 | $0 | None |
| Total | 1,200 | $28,780 | Margin $5,020 before funding cost |
All figures are hypothetical; the $5,020 margin already absorbs 80 cases of spoilage, and it is before your funding cost, labor and delivery to customers.
How much shelf life does the lot really have?
The date on the case is not the date you can sell to, because your customers will refuse product that is too close to expiry, so count back from their minimum acceptable shelf life.
Start with the code date on the cases and the date the product will be on your dock. Then subtract the shelf life your buyers need. A restaurant group may want at least two weeks of life on delivery, while a grocery chain may want more. That leaves your true selling window, which may be shorter than the supplier's pitch suggested.
- Pack, best-by and use-by dates on every pallet
- Dock date and any lot-code mixing
- Each customer's minimum remaining shelf life
- Storage temperature range the supplier certifies
If the window is narrow, the discount might exist for a reason. Prime's guides openly say when a deal is not worth funding, and a lot that cannot be sold before it ages out is one of those. Our wholesale distributor funding page shows how funders look at a distribution file.
What does cold-chain freight add to the cost?
Cold-chain freight adds a fixed cost per load, so it is cheaper per case on a full truck and expensive on a partial, and it must be arranged before payment.
The hypothetical lot uses one refrigerated load at $1,500, which is $1.25 a case across 1,200 cases, plus $0.55 a case for cold storage until delivery. Together they raise the cost from $18.00 to $19.80 a case. If the supplier is far away or you need a second stop, the freight line can erase much of the discount.
Confirm the carrier's temperature logging, who bears the risk of a temperature excursion and what happens if the receiving dock refuses the load. Keep the temperature records, because disputes over spoilage depend on them. This is also where the inventory deal cash timeline helps, since it lays out when each freight and storage payment falls.
Which customer commitments should be in place before you buy?
Buy discounted perishables only when you can name the customers, the cases and the delivery dates, because unsold stock loses value every day.
In the example, 600 cases are committed to group A and 400 to group B, both at $26.50 a case. Another 120 cases are set aside for markdown pricing because their dates are shorter. The last 80 cases are assumed lost. That is a spoilage allowance of just under seven percent of the lot, a planning number you should replace with your own experience.
Get commitments in writing where you can, such as emails or purchase orders showing quantity, price and delivery date. Funders review the file, so deal paperwork like that matters. Check also whether any customer can reject cases at delivery and how returns are credited.
When does the cash come back?
Collection timing decides whether you can repay on schedule, so line up each customer's payment terms against the repayment dates before you apply.
Group A pays in 14 days, which brings in $15,900. Group B pays in 30 days, adding $10,600. The markdown cases bring $2,280 on delivery. All three arrive within a month of delivery, for a total of $28,780 against a landed cost of $23,760. That leaves $5,020 before funding cost, labor and delivery.
The risk sits in group B. If that customer pays late, you carry $10,600 longer than planned. For longer terms, see our guide on wholesale orders paid on net 60. Compare the lot with working capital for inventory deals, and when your numbers hold, start the application with the supplier quote and customer orders.
Frequently asked questions
What if some of the product spoils before it sells?
Plan for it. The worksheet assumes 80 of 1,200 cases are lost, and your own number should come from past lots. A deal that only works with zero spoilage is probably too thin to fund.
Do I need customer orders before I apply?
Not always, but committed orders make your plan easier for a funder to review. Include any emails, purchase orders or standing orders that show quantities, prices and delivery dates alongside the supplier quote.
Can funding cover freight and cold storage?
You can describe the full landed cost on the application. What a funder will cover is set when it reviews the file, so list freight and storage separately and ask about them when you see a written offer.
How is the funding cost shown?
Compare any offer in dollars: total repayment minus the cash received. Put that figure into the worksheet and see whether the lot still leaves a margin after it.
What is the funding range?
Prime reviews requests from $25,000 to $5,000,000, depending on the product and the business. A decision typically comes within 24 hours of a complete application, and funding time varies by product.
Describe your purchase and deadline
Share the supplier quote, expiry dates and customer orders, and a funder reviews the file.
Updated October 17, 2026 · Prime Funding Now Funding Team