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Wholesale Business Financing

Purchase Order Financing Benefits for the Wholesale Industry

Wholesalers distributors are responsible for the resale of bulk or finished goods, which are then made available at retail value. Oftentimes, the capital needed to fulfill resale requests is not readily available. Many savvy wholesale distributors do not carry a large inventory, which can leave them in a precarious situation to fulfill time-sensitive orders. In these circumstances, wholesale distributor financing is the perfect solution.

This is where Meridian PO Finance comes in. If you are a wholesaler trying to determine how you will fulfill a resale purchase order with restricted resources, PO financing is your ideal solution.

Wholesale distributor financing information & requirements

  • Financing can be used to obtain small or larger than average purchase orders.
  • Must be in business for at least 6 months.
  • Having prior experience in previous transactions is certainly an advantage, but not always required.
  • With sufficient margins, Meridian will fund up to 100% (cost of goods) to the supplier.
  • Minimum PO funding amount $10,000 and up to $10,000,000
  • Minimum of 20% profit margins.
  • Transaction timelines less than 120 days.
  • Viable purchase orders from creditable businesses.
Wholesale PO Financing

How it works:

  • The wholesale distributor presents Meridian with their purchase orders from both their supplier/manufacturer and their customer.
  • Once both purchase orders are verified, Meridian advances supply chain financing directly to the supplier, based on the wholesaler’s terms and agreements.
  • If supplier is internationally based, Meridian will take the necessary steps to fund through Letters of Credit.
  • If Suppliers are domestic, located in the USA, Meridian will fund via wire transfer.
  • The wholesale distributor is then able to fulfill their purchase orders and distribute product.
  • The customer then pays Meridian PO Finance directly for product delivered.
  • The account is settled by Meridian collecting its principal and fee and forwards profits to client
  • The wholesale distributor receives their profits, ultimately increasing their bottom line.

In the end, everyone benefits from this type of supply chain financing. The wholesaler is not only able to obtain the capital needed to fulfill various or specific orders they wouldn’t have been able to finance, but also to satisfy their customer requests—all with the help of Meridian.

Contact us today at 1-877-988-6868 or Contact us today!

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