Quick answer
Wholesale and import business loans fund stock purchases, supplier deposits, freight, duty and the long wait for customers to pay. Wholesalers carry inventory and sell on terms, so trade finance, invoice finance and lines of credit are common. Property-secured loans support larger stock builds or when credit history limits other options.
Key points
- Cash is tied up in stock and customer terms at the same time
- Trade finance pays suppliers before goods sell
- Invoice finance releases cash from trade customers
- Currency and shipping delays add risk
The double squeeze
Wholesalers and importers are squeezed from both ends. Suppliers want deposits and payment before shipping. Customers want 30 to 60 day terms. Between the two sit freight, customs, duty and warehousing. The more successful the business, the more cash is tied up in the pipeline.
Common funding needs
| Need | Typical option |
|---|---|
| Supplier deposits and balances | Trade finance |
| Freight, duty and clearance | Trade finance or short-term loan |
| Customers on long terms | Invoice finance |
| Seasonal stock builds | Working capital or line of credit |
| Warehouse fit-out | Equipment finance or unsecured loan |
What lenders look for
- Supplier relationships and order history.
- Customer list, terms and payment behaviour.
- Stock turnover and margins after landed costs.
- Bank statements showing the trade cycle.
Managing the risks
Shipping delays, currency movements and customers paying late can all stretch the cycle. Build buffers into your funding, keep an eye on landed cost margins, and know what happens if repayment falls due before stock sells.
An illustrative example
A food importer supplying independent grocers wanted to increase its order size to secure a better price from its supplier. A trade finance facility paid the supplier, and an invoice discounting facility released cash from grocers’ invoices, closing the gap from both ends.
Larger stock builds
When stock needs are large or credit history limits trade lenders, property-secured loans anywhere from $20k to $5m can fund the build, without a valuation before approval.
Mistakes we see in wholesale funding
Ordering on optimistic sales forecasts and ending up with slow-moving stock is the classic problem. Base orders on past sell-through and confirmed customer commitments. Another is ignoring landed costs: freight, duty, insurance and exchange rate movements can turn a healthy margin into a loss. Calculate the true landed cost before you finance an order. Finally, watch customer credit. Extending generous terms to win business can leave you funding your customers’ cash flow as well as your own.
Fund your supply chain
Use the 60-second form and tell us about your products, suppliers and customers. You can ask with no credit check, an expert looks it over, and there is no lender auction. Get import funding options.
Frequently asked questions
Can I fund overseas supplier deposits?
Yes. Trade finance or short-term loans commonly fund deposits and balance payments.
What about freight and duty?
These can be included in trade finance or working capital funding.
How do I handle customers paying on 60 days?
Invoice finance can release most of the invoice value early.
Do lenders consider currency risk?
Some ask how you manage it. Margins should allow for exchange rate movements.
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