Distribution businesses buy and move stock long before customers pay for it. Add in extended payment terms from buyers and rising overheads, and it's easy to end up with more cash tied up in the warehouse and the sales ledger than in the bank.
Invoice finance for distribution companies converts unpaid invoices into working capital, so you can pay suppliers, restock and take on new business without a cash flow squeeze.
Warehousing, transport and staffing costs keep climbing, tightening margins on every order.
Landing bigger contracts is great for turnover, but funding the extra stock and delivery cost before you're paid can leave you short.
Customers pushing 30-day terms out to 60 or 90 days can create a funding gap that grows in line with your turnover.
Without enough reserves, a single late payer can throw the whole business off balance.
If your current finance is costing more than it should, it may be time to compare your options.
We compare the whole invoice finance market on your behalf, including funders who specialise in stock-heavy, high-volume distribution businesses, so you get a facility that matches how you trade.
We arrange your finance so you can stay focused on customers and stock, not lender applications.
We place you with the right funder first time, rather than you working through the market alone.
We can negotiate better rates across our panel than you're likely to secure going direct.
Funds can be released the same day from your invoices, keeping stock and suppliers funded.
Can work out better value than an overdraft or loan, particularly as your turnover grows.
Easy to use online systems make drawing funds part of your everyday process.
Your facility grows in line with your sales ledger, so bigger orders don't mean a cash flow crisis.
Please contact us if you cannot find an answer to your question.
Not with a confidential facility such as invoice discounting, where collections continue to look exactly as they always have from your customer's side.
It's often more cost effective than assumed, especially compared to the cost of turning down orders because stock or delivery costs can't be funded.
A professional funder manages collections in a way that protects your relationships, not one that puts them at risk.
Usually none beyond your invoices themselves, meaning your stock, premises and other assets aren't required as security.
No matter how long you've been trading or what you distribute, if you invoice other businesses and wait weeks to be paid, invoice finance can give your distribution business fast, flexible and secure access to the cash it needs to grow.
Get in touch for a free, no obligation comparison of invoice finance options for your distribution business.
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Simply Invoice Finance is a trading style of Goodman Corporate Consultancy Limited, an independent commercial finance broker, not a lender. As such, we can introduce you to a wide range of finance providers depending on your requirements and individual circumstances. We are not independent financial advisors and are unable to provide independent financial advice. We typically receive payment or other benefits from the finance provider if you decide to enter into an agreement with them.
Goodman Corporate Consultancy Ltd is authorised and regulated by the Financial Conduct Authority, No. 733340.