Can wholesalers and distributors access invoice finance through your partners?
The short answer and how invoice finance fits wholesale and distribution
Yes — many wholesalers and distributors can access invoice finance through our lending and broker partners, subject to eligibility and credit assessment. Our role is to introduce your business to suitable, FCA‑authorised providers who offer factoring and invoice discounting solutions tailored to B2B trade on credit terms. We do not lend; we help you find relevant providers who may support your cash flow against outstanding invoices.
Who typically qualifies?
Invoice finance is generally suitable for UK B2B wholesalers and distributors issuing invoices with agreed credit terms, usually 30–90 days. Most providers look for limited companies or LLPs with a trading history and a ledger of creditworthy customers. If you trade only with consumers or cash-on-delivery, invoice finance is unlikely to fit.
How does it work for wholesalers?
On approved invoices, funders may advance up to 70–90% of the invoice value, with the balance (minus fees) released when your customer pays. In factoring, collections support is included and debtors may be notified; in invoice discounting, the facility is often confidential and you retain credit control. The facility can flex with sales volumes, which suits seasonal and high‑throughput operations.
Quick answer highlights
- Available to eligible UK wholesalers and distributors trading B2B on terms.
- Solutions include factoring, confidential discounting, and selective facilities.
- We introduce you to suitable providers; funding decisions rest with them.
Why invoice finance suits wholesalers and distributors
Cash flow benefits built for supply chains
Wholesalers often face extended payment terms from retailers, hospitality groups, and industrial buyers, while paying suppliers faster. Invoice finance helps close this working capital gap without waiting for settlement. By unlocking cash tied up in invoices, you can buy stock, secure early‑payment discounts, or fund growth safely.
Facility types you may encounter
- Full-service factoring: Funding plus collections and debtor management.
- Confidential invoice discounting: Funding only; you maintain credit control.
- Selective/single-invoice finance: Fund specific invoices or debtors on demand.
- Export invoice finance: Support for international debtors with added trade expertise.
Operational advantages
Facilities scale with your invoice volume, aligning funding with sales growth and seasonality. Some providers approve same‑day drawdowns once set up, supporting agile purchasing and logistics planning. Many fund across diverse customer books while managing concentration limits to mitigate risk.
Sector nuance: food and beverage wholesaling
Food, drink, and ambient goods distributors frequently use invoice finance to manage tight margins and perishability risks. If you operate in food manufacturing, processing, or wholesale, see our guide to food industry loans and finance options. Eligibility and terms vary by buyer quality, debtor spread, and trading performance.
Eligibility, documents, and how Best Business Loans helps
What lenders commonly look for
- Trading profile: Established limited company or LLP trading B2B (we don’t support start‑ups or sole traders).
- Invoices: Clear, undisputed invoices with agreed terms and proof of delivery.
- Debtor quality: Creditworthy customers, manageable debtor concentration, and low dispute rates.
- Financials: Recent management accounts, filed accounts, and an aged debtor report.
- Sectors/Buyers: Some lenders specialise in retail, hospitality, automotive, construction, or public sector buyers.
What to prepare for a quicker assessment
- Latest aged debtor and creditor listings, plus monthly sales.
- Sample invoices, PODs, and standard terms and conditions.
- Turnover, average term length, and top‑10 customers by revenue.
- Any existing funding arrangements and notice periods.
How our matching process works for wholesale firms
Complete a Quick Quote with your sector, required facility size, and typical payment terms. Our system analyses your profile and introduces you to lenders or brokers active in wholesale and distribution. You review the options and decide whether to proceed with any introductions — there is no obligation to accept an offer.
Timelines and typical parameters
- Indicative terms: Often within 24–72 hours of a complete enquiry.
- Onboarding: 1–3 weeks, depending on diligence, contracts, and debtor verification.
- Advance rates: Commonly 70–90%, varying by risk and debtor quality.
- Funding limits: Set against approved ledgers and concentration caps.
Costs, security, and compliance considerations
Understanding costs
- Service fee: Typically a percentage of turnover or invoice value for facility management.
- Discount rate: Interest charged on funds drawn, often linked to a base rate.
- Additional charges: Possible audit, trust account, CHAPS, or renewal fees.
Your provider will disclose all applicable fees and how they are calculated before you sign. Costs vary by facility type, turnover, sector, concentration, and operational complexity. Always compare the total cost of funding against benefits such as supplier discounts, inventory turns, and growth potential.
Security and contractual points
- Debenture/assignment: Lenders commonly take a fixed and floating charge over receivables.
- Notice of assignment: Factoring often notifies customers; discounting may be confidential.
- Recourse vs non‑recourse: Non‑recourse can include bad debt protection for approved debtors.
- Concentration limits: Caps on exposure to single customers manage risk.
- Covenants: Maintain agreed reporting and ledger quality to keep access to funding.
Clear, fair, and not misleading
Best Business Loans is an independent introducer and does not provide credit. Any finance is provided by FCA‑authorised firms we introduce you to, subject to status, eligibility, credit checks, and due diligence. We encourage you to read all pre‑contract disclosures and seek professional advice where appropriate.
Examples, FAQs, and next steps
Illustrative wholesale case study
A UK beverages distributor with £8m turnover faced 60‑day terms from national retailers. An invoice discounting facility at an 85% advance rate released cash against approved invoices, reducing reliance on expensive short‑term borrowing. The company improved supplier terms, boosted stock availability, and supported new store listings — outcomes will vary by business and lender.
Quick FAQs
What is the difference between factoring and invoice discounting? Factoring includes collections with notified debtors; discounting funds invoices confidentially while you manage credit control. Eligibility, pricing, and processes differ by provider.
Can I finance only certain customers? Some partners offer selective invoice finance where you choose specific debtors or invoices, subject to approval. This can suit seasonal or project‑based trading.
Do I need personal guarantees? Some lenders request guarantees alongside a receivables assignment. Requirements depend on risk, facility size, and business strength.
What about export sales? Export invoice finance and trade credit insurance may be available for approved overseas buyers. Lenders will assess jurisdiction, payment terms, and documentation quality.
Do you support start‑ups or sole traders? No — our platform is geared to established UK businesses, typically limited companies and LLPs. We focus on sectors where commercial funding is active and relevant.
Key takeaways and next steps
- Yes — wholesalers and distributors can access invoice finance via our partners if they meet eligibility criteria.
- The right solution (factoring or discounting) depends on debtors, terms, ledger quality, and internal processes.
- Prepare aged debtor reports, sample invoices, and management accounts for faster decisions.
- Costs include a service fee and discount rate; weigh them against supplier savings and growth.
Ready to explore your options with minimal hassle? Start your Quick Quote for an eligibility check and introductions to providers active in wholesale and distribution. It’s free to enquire and there’s no obligation to proceed.
Helpful resources
Important information
BestBusinessLoans.ai is not a lender and does not provide financial advice. Any introductions are to finance professionals and firms who may be able to help, and all decisions rest with them. Finance is subject to status, affordability, eligibility, and terms set by the provider.
How to apply via Best Business Loans — in three simple steps
- Submit a Quick Quote: Share your sector, turnover, invoice terms, and funding need.
- Get matched: We introduce you to relevant lenders and brokers for your profile.
- Compare and decide: Review proposals, costs, and processes, then proceed if you’re happy.
Update notice
Content last reviewed: October 2025. We recommend checking current lender criteria and rates during your enquiry.