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Financing for Wholesale Distribution Businesses

Purchase Order Financing Benefits for the Wholesale Industry

Wholesale distributors perform the important task of delivering finished goods and thereby providing retail value. However, the sales cycles they have with their customers can be interrupted from time to time due to lack of working capital.

Oftentimes, wholesale distributors have a limited inventory. This can leave some businesses in a precarious situation. When their inventory runs out, they cannot fulfill time sensitive orders and they end up losing business to the competition.

This is where Meridian PO Finance comes in. Meridian works with wholesale businesses that are trying to determine how to fulfill their obligations with limited resources. We provide real solutions.

Wholesale distributor financing information & requirements

  • You can get financing for a wide range of orders from small to large.
  • Minimum of 6 months in business or performed similar transaction before to receive PO financing.
  • You are not required to have prior experience to receive invoice financing, but that would be an advantage.
  • Minimum of 20% margin, Meridian PO can pay for the total cost of supplies, goods, raw materials.
  • You can get purchase order funding amount starting from $10,000 all the way to $10 million.
  • Short-term transactions are preferred for PO finance (90 days or less).
  • Able to Factor recievables up to 120 days.
  • The purchase orders need to be from viable and credible organizations.
Wholesale PO Financing

How it works:

  • As a wholesale distributor, you’ll be required to present Meridian with a copy of purchase orders for both your supplier/manufacturer and your customers.
  • Purchase orders will be verified by Meridian, funding will be released directly to the suppliers involved.
  • For suppliers located overseas, Letters of credit will be financed to reduce transaction risks.
  • If the supplier is in the united states the funds will be sent via bank transfer.
  • The distribution finance from Meridian will allow you to pay for your purchase order and get your business moving.
  • Once the payment is made Meridian deducts the fees and forwards the profits to the client. At this point, the account will have been settled.

How Can Wholesale Business Financing Help My Company Expand?

  • Large Customer Orders: Wholesale business financing allows you to pay for large unexpected orders that you need to fulfill in a timely manner. You can conveniently pay your supplier for goods delivered without being an invoice client yourself.
  • Fast and Easy approval: The approval is fast and easy because it relies on your purchase orders from both your manufacturer/supplier and customer.
  • Focus on Your Core Business: This type of financing allows business to focus on their core functions by delegating the task of invoice collection to the financier.
  • Meet Your Customers’ Demands: You don’t have to wait for a loan approval from the bank once your working capital runs out. Businesses can, therefore, meet their customer demands which increase customer satisfaction and creates more opportunities.

Finance Your Wholesale Operations By Calling Us Today!

Contact Meridian PO

Are There Any Financing Regulatory Restrictions For Wholesale Businesses?

The regulatory restrictions define limits for lenders. This is to manage risks which protect both the borrower and the lender. You may face restrictions from the lender. For example, Meridian requires that you should have been in business for at least six months to receive financing or have preformed a similar transaction.

Can I Use Wholesale PO Business Financing To Export Wholesale Goods?

All transactions present various risks factors and depending on transactions details, Meridian may or may-not be able to provide assistance. Meridian PO will evaluate your export business transaction details to evaluate its creditworthiness. Once approved, Meridian can assist you in structuring the export process in order to manage risks and increase your likelihood of getting PO financing.

What Are My Financing Restrictions When Distributing Internationally?

The main factor that will determine whether you get capital for your export business is the creditworthiness of your foreign customer. Export credit insurance, is required when arranging to get financing from a lender. Sometimes, businesses need to restructure their timeline to emphasize receivable financing.