The products everyone purchases from retailers are not provided directly from the manufacturers, but instead travel through wholesale channels first. Wholesalers serve retailers and other service industries via distribution channels and supply funnels.
Topping the funnel are manufacturers followed by wholesalers or regional distributors, who pass the products to the companies responsible for delivering these retail goods to merchants.
When to Seek Wholesale Capital
What can slow or halt any supply chain, especially for small wholesale businesses, is low inventory and insufficient capital to restock.
National Business Capital understands that quick access to additional cash flow is imperative and integral to continued business growth. We offer our clients access to the best wholesale distribution financing programs available.
Our goal is to establish an ongoing business financing relationship. In future whenever our clients require additional working capital for any business-related expense, we can assist them to expedite that financing.
Top 5 Wholesale Distribution Loans
National Business Capital’s Business Consultants instruct our clients about how to get business funding. We make them aware of the best options for those in the wholesale distribution sector, including:
- Wholesale small business loans
- Small Business Administration Loans (PLEASE NOTE: these are government-issued and have a longer financing timeline.)
- Wholesale Business Line of Credit
- Purchase order financing
- Accounts receivables financing
7 Most Common Types of Wholesale Businesses Funded
Some of the businesses National Business Capital serves include:
- Industrial distributors
- Cash-and-carry wholesalers
- Importers and exporters
- Retailer cooperative warehouses
- Cooperative buying and marketing associations
Wholesale Business Loans Requirements
Unlike more traditional financing processes, National Business Capital’s application requires minimal paperwork, our decisions use realistic qualification criteria, and, once approved, quick access to financing. The advantages of our small business loans include:
- Once approved, access to funds in usually 24 hours
- Financing may be used for any business expense
- Easy application and a lightning-fast approval process with minimal personal paperwork
- Low FICO and open tax liens are not immediate disqualifiers
A Boom in the Wholesale Distribution Industry
According to First Research, which provides key metrics across a broad range of industries, as of first quarter 2016 there are currently about 400,000 wholesale distribution companies in the United States.
These companies’ combined annual sales total $8 trillion, which is a great boon for the economy. The top 50 companies in wholesale distribution account for 25% of that revenue. This is a highly competitive sector, however, with its profitability closely linked to its local economy.
Wholesale Inventory Management & Order Fulfillment
Individual profitability also depends on efficient inventory management and order fulfillment operations. It is a sector with room for every company that clearly identifies its customers and caters directly to them.
The leverage that large multi-location wholesalers have is the ability to supply their customers with a wider range of goods in more markets. While small distributors have the advantage by carrying specialty products and in providing add-on services.
Wholesale Volume vs. Buying Power
According to the Small Business Association (SBA), this highly fragmented industry is a ladder that smaller wholesalers must climb to eventually become bigger, more competitive and even more profitable.
Key to a successful ascent is volume. The greater the buying power, the lower the wholesale price becomes. This increases sales volume and yields higher profits. Small business start by selling and shipping to other small businesses. In theory, increased sales will propel both businesses forward.