Distribution Companies Financing

Distributor Financing

What are the Benefits of Invoice Factoring & Accounts Receivable Financing For Distribution Companies?

What is Needed for Distributors to Get Started with No Credit Risk Invoice Factoring?

Use our fast, safe and secure online funding application, Contact Form or call us at 888-400-5931.

Best Factoring Company Get the Cash you need Today


Apply Now

When the banks do not grant business loans or offer too little, distribution companies get working capital through invoice factoring and purchase order financing programs- all tailored for distributors and importers specific needs!

How to Finance a Distribution Company?

Here are the steps to take in financing a distribution company:

  • For example, you have a $400,000 order for wine, t-shirts or other products from a big-box retailer.
  • Your company can buy the materials and add labor for of total cost of $300,000.
  • The problem is your company does not have $300,000 in cash to fulfill the order.
  • Using our PO Funding Program, we will buy the goods for you.
  • Then have the goods shipped to the big-box retailer.
  • The big-box retailer then pays us and you get the cash.
  • You can get up to 90% of your receivables right now, and the rest when your clients make their final payment.

In addition, our PO Financing allows you to fund much larger deals than you would otherwise be able to. We not only allows you to grow your business but also becomes your credit department. It’s simple as that! Get started immediately by filling out the simple and quick online funding application. And remember, our agreements allow you the flexibility to factor what you want when you want. You can pick and choose the accounts that you want to factor.

Why Factoring For Distributors?

  1. Tailored program for Distributors and Importers

  2. Low Rates 1.25-2% per 30 days

  3. Super Fast Funding

  4. No Credit Risk

  5. Increase Your Cash Flow

  6. Receivable Management

A Case Study in Purchase Order Financing and Factoring Line of Credit

One-stop shop for two services
PO Financing and Factoring Line

Client: A start-up discount retail food broker based in New York City

Industry: Grocery

Situation: The Company purchases overstock food items from large suppliers at a discount and re-sells them to discount stores such as Dollar Tree. By ordering in bulk and drop-shipping to his retail customers, he avoids the capital-intensive needs of a warehouse and crew. The owner had long ties to the food industry and had recently leveraged his large network of contacts at food sellers to launch this new company on his own. He had an opportunity to work with Dole Food Company, Inc., but he needed working capital in order to pay Dole before he had payment in hand from his retail customers. The Company had great growth potential but had only just incorporated, so bank financing was not available.

The Deal: The Company chose Paragon Financial over other factors because they liked the ability to access PO and accounts receivable financing all with one company. Paragon provided a combination of $500,000 in Accounts Receivable Financing and a Purchase Order (PO) line of credit.

  • As part of the PO line of credit, Paragon first wired money to Dole so they would ship product.
  • Once the Company had invoiced their retail customer, Paragon began Accounts Receivable Financing.

Result: Our multi-level funding gave the Company the ability to pay suppliers and work with large enterprises such as Dole, and gave them the working capital they needed to grow the business.

How can Distributors Qualify for Funding?

Who can afford to wait 45, 60 or 90 days to get paid by your large commercial or government customers? Factoring companies like Paragon look at your customer’s ability to pay, not your personal credit. Receivables factoring provides you with the working capital your company needs. To qualify for Accounts Receivable Financing, you need:

  • Creditworthy Business Customers
  • Proof of Work Completed or Product Delivered
  • Operate as a Corporation
  • Decent Profit Margins
  • Copies of your Contracts, Agreements or Purchase Orders with your Customers
  • Revenues of $25,000-$10,000,000 per month
  • Invoices free of Tax Liens and other Encumbrances
  • No Open Bankruptcies

Get fast funding for distribution companies today!

Apply Securely, call 888-400-5931 ext 1 or email us.

Money When Your Business Needs It Most!™

  • Get Cash Today

    Best Factoring CompanyGet the Cash You Need Today

    Just fill out this quick & easy form!

  • This field is for validation purposes and should be left unchanged.
Get Cash Today
  • Quick Contact Form
  • This field is for validation purposes and should be left unchanged.

Back to Top

Best Factoring Company

Get Started Immediately