Wholesale and distribution businesses typically run $75,000 to $400,000 a month in deposits, and the cash is committed before it's collected almost by design: inventory has to be bought and paid for ahead of the season or the purchase order it's meant to fill. A supplier commonly wants payment in 30 days, sometimes upfront or with a deposit on a large or custom order; the customer on the other end of that inventory often pays on 30-to-60-day terms of its own, sometimes slower once the goods actually ship.
That timing mismatch is the business, not a flaw in it. Buy $150,000 of inventory ahead of a season, pay the supplier on its terms, and the matching customer revenue can trail by one to two months after the goods move — a real, recurring gap between what goes out to stock the shelf and what comes back in from selling it.
Three tools cover it: purchase order financing tied to a specific confirmed order, inventory financing secured by the goods themselves, or a revenue-based advance against overall deposits. Consistent, predictable deposit patterns are exactly what this industry does well, and exactly what an underwriter is looking for — even when the cash on hand looks thin mid-cycle.
of small business financing applicants received the full amount they requested
Federal Reserve, 2026 Small Business Credit Survey
The other 58% weren't turned down outright — they were priced, sized, or timed differently, often because the file didn't show the deposit consistency this industry is capable of demonstrating.
Enough to fund the inventory buy for the next season or the next large purchase order before that inventory converts back to cash — typically $75,000 to $400,000 a month in deposits for businesses in this range. Sizing scales with the purchase order or seasonal buy, not average monthly revenue.
Core placements run $50,000 or more a month in deposits, which is where most established distributors already sit. Most deals land between $20,000 and $200,000 a month; there's a dedicated program below that.
The supplier is typically paid — in full or with a deposit — weeks before the goods are even sold, and the customer payment that closes the loop can land a month or two after that. The table below shows one purchase order's shape.
| Milestone | Cash out | Cash in |
|---|---|---|
| PO placed / deposit paid | 30-50% deposit to supplier | — |
| Goods produced & shipped | Balance due to supplier | — |
| Goods received | Remaining supplier invoice due (commonly net-30) | — |
| Goods sold to customers | — | Customer invoices issued |
| Customer payment collected | — | Paid on customer's own 30-60 day terms |
Every row before the last one is cash the distributor has already committed. The season sells through on its own schedule; the cash to pay for it was due long before that.
Supplier terms are commonly net-30, and large or custom orders frequently require a deposit upfront regardless of the standard terms on file. Customer terms typically run net-30 to net-60, sometimes longer with large retail or institutional buyers. The distributor sits in the middle, financing whatever gap exists between the two — and the gap is rarely zero.
PO financing pays the supplier against a specific confirmed customer order; inventory financing lends against goods already in stock; an advance funds against overall deposits. Each fits a different point in the cycle.
| Structure | Financed against | Fits best when |
|---|---|---|
| Purchase order financing | A specific, confirmed customer purchase order | You have a signed PO and need to pay the supplier before the customer pays you |
| Inventory financing | The inventory itself, as collateral | You're carrying stock across a season rather than financing one specific order |
| Revenue-based advance | Overall business deposits | You need general working capital not tied to one PO or one supplier payment |
PO financing and inventory financing are typically structured as credit secured by the order or the goods — interest applies, and terms are set against the specific collateral. A revenue-based advance is a purchase of future revenue, priced as a factor rate and repaid through a holdback, not a loan.
The distributor absorbs the gap immediately — the supplier payment date doesn't move just because the customer's does. A customer that shifts from net-30 to net-60 without renegotiating pricing has effectively asked the distributor to finance an extra 30 days of its own working capital, for free, on every order going forward. This is one of the most common triggers for a distributor suddenly needing more working capital than the P&L would suggest.
Because wholesale and distribution businesses tend to show some of the most predictable deposit patterns in commercial finance — recurring customers, repeatable order cycles, and seasonal patterns that repeat year over year. A funder reading a distributor's bank statements is often looking at a cleaner, more forecastable pattern than in industries with lumpier or one-off revenue, which tends to work in the distributor's favor even when cash on hand looks tight mid-cycle.
A few honest lines before financing the next buy:
Supplier's due before the season sells through. Tell us the PO or the buy and your supplier and customer terms, and we'll size what actually fits — PO financing, inventory financing, or general capital.
See your options →No credit pull to talk. Business-purpose financing only.
Under $20K a month in deposits? Most of what's above is priced for businesses doing $50K or more a month in deposits — that's the core of what we place. Funding doesn't stop below that line, though; the structure just changes. There's a program built for exactly your revenue level, and the same rule applies either way.
See what you qualify for →Handled through a funding partner. No upfront cost, and we're paid only if it funds.