Working Capital for Wholesalers, Distributors and Exporters
A growing order book can put pressure on cash before it produces cash. Inventory purchases, supplier deposits, freight and payroll may come due weeks before your customers pay. For wholesalers, distributors and exporters, the useful funding question is: how much cash is tied up, for how long, and how will the business repay it?
239 Loans helps business owners explore financing options and understand the information lenders need. Based in Southwest Florida, we provide guidance in English and Spanish.
Start with the gap between paying and collecting
Map the purchase and sale cycle before choosing a product. When must you pay the supplier? How long will the goods remain in inventory or transit? When is delivery expected, and when does the customer actually pay? Include freight, duties, storage and operating expenses in the timing.
Illustrative example: a distributor has $60,000 of inventory purchases and $10,000 of related costs due before collection. If it can safely contribute $20,000 of available cash, the initial funding gap is $50,000. That is a planning estimate—not a borrowing recommendation or a qualification result. Returns, slower collections and other expenses can change the amount.
Match the funding structure to the use
Business line of credit: discuss whether a revolving facility could fit recurring inventory purchases and collection gaps. Compare draw rules, fees, repayment frequency and how available credit is replenished.
Term financing: consider a defined expansion project separately from ordinary replenishment. Ask whether the repayment period fits the time it will take the project to generate cash.
SBA financing: eligible uses under the SBA 7(a) program include working capital and equipment. SBA also describes a Working Capital Pilot that can support eligible businesses borrowing against inventory or receivables. Availability, eligibility and documentation must be confirmed with a participating lender. This is not a statement that every program is available through 239 Loans.
Equipment financing: separate a warehouse, production or delivery-equipment purchase from the cash needed for inventory. Compare the equipment’s expected usefulness, total cost and the proposed payment schedule.
Revenue-based financing: if considering an advance tied to business revenue, review the total repayment amount, payment frequency, reconciliation terms and early-payoff terms. A quoted factor rate is not an APR; compare the actual cash-flow impact across offers.
What to have ready for the conversation
Start with your business name, requested amount, purpose and timing. For a more detailed review, be ready to discuss recent business bank statements, existing debt payments and current financial statements. A lender may also request tax returns, inventory reports, accounts-receivable and accounts-payable aging reports, and customer or supplier information. Requirements vary by program.
For an export-related request, explain where the business is located, where goods will be shipped, who the customer is, the payment terms and the currency involved. International transactions may require additional review. Ask about the appropriate program before assuming a domestic working-capital product will fit.
Compare offers beyond the approved amount
Review how much cash the business receives after fees, total repayment, payment dates and frequency, guarantees or collateral, and any restrictions involving other financing. Test whether the payments remain manageable if a major customer pays late. Do not treat a preliminary estimate as an approval.
Talk through your next inventory purchase or expansion
Tell us what you need to finance and when. You can use the funding inquiry form on our homepage without uploading documents, or call Steven Ruiz at 239-234-2727. Once the request has been reviewed, we can explain the next steps and which documents may be needed.
¿Prefieres hablar en español? Podemos revisar tu necesidad de capital y explicarte los próximos pasos. Llama al 239-234-2727.
239 Loans is a business-funding brokerage operated by Presto Prestamo, LLC, not a direct lender. All financing is subject to lender review and applicable requirements. Approval, pricing, amounts and timing are not guaranteed.
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