TL;DR: Wholesale and distribution businesses buy stock upfront and sell on 30–90 day terms. Invoice finance lets you unlock the cash tied up in unpaid invoices so you can restock, fulfil orders, and grow without waiting for customers to pay.
The Cash Flow Challenge in Wholesale
Wholesalers and distributors face a double cash flow squeeze. Suppliers often require payment on delivery or short terms, while customers expect 30, 60, or even 90-day payment terms. The larger your order book, the more capital is tied up in stock and receivables.
Seasonal demand makes this worse — you need to stock up before peak periods, but payment for those goods comes months later.
How Invoice Finance Works for Wholesalers
With Fundtap, you select invoices from your accounting software and receive funds within hours. Use the cash to pay suppliers, restock inventory, and fulfil new orders without waiting for customers to pay.
- Fund supplier payments from outstanding customer invoices
- Maintain stock levels during seasonal demand
- Take on larger orders without cash flow constraints
- No stock or property security required
Why Wholesale Businesses Choose Fundtap
- Funded within hours
- No lock-in contracts or minimum volumes
- Single fee from 4% per invoice
- Confidential — customers never notified
- Scales with your order volume
- Integrates with Xero, MYOB, and QuickBooks
Yes. Wholesale and distribution businesses commonly use invoice finance to bridge the gap between paying suppliers and receiving customer payments.
Yes. Because Fundtap has no minimum volumes or lock-in contracts, you can use it heavily during peak seasons and not at all during quiet periods.
Funding scales with your invoice volume. The more invoices you issue, the more you can fund. There is no fixed limit.
No. Choose individual invoices to fund based on your cash flow needs. There is no whole-ledger requirement.
Invoice finance scales with your revenue and does not add debt to your balance sheet. A line of credit has a fixed limit that may not keep up with growing order volumes. Many wholesalers find invoice finance more flexible.