Industry financing

Wholesale & Distribution Business Loans

Financing solutions for wholesale distributors and distribution companies. Wholesale and distribution business loans help distributors finance inventory, warehouse equipment, vehicles, and working capital. Common uses include inventory purchases, warehouse equipment, delivery vehicles, technology systems, and working capital. Loan types: inventory financing, equipment financing (6–30% APR) for warehouse equipment and vehicles, term loans ($25k–$500k), lines of credit ($25k–$250k), and SBA loans (6–13% APR) for real estate. Approval in 24–72 hours for alternative lenders. Requirements: 6+ months in business, $10k+/month revenue, 600+ credit.

Common Financing Needs

  • Inventory & Stock: Product inventory, bulk purchases, seasonal stock, new product lines
  • Warehouse & Equipment: Forklifts, warehouse equipment, storage systems, loading docks
  • Vehicles & Fleet: Delivery trucks, fleet expansion, vehicle maintenance
  • Working Capital: Cash flow management, payment gaps, operating expenses, payroll

Best Loan Types for Wholesale & Distribution

1. Business Line of Credit — Best for inventory purchases and ongoing operating expenses. Rates: 8–25% APR, Limits: $25k–$250k. Draw as needed; pay interest only on what you use.

2. Equipment Financing — Best for warehouse equipment, forklifts, and vehicles. Rates: 6–30% APR, Terms: 2–7 years, Amounts: $25k–$500k+. Equipment serves as collateral.

3. Term Loans — Best for large inventory purchases, fleet expansion, and one-time needs. Rates: 8–25% APR, Terms: 1–5 years, Amounts: $25k–$500k. Fixed monthly payments.

4. SBA Loans — Best for real estate, warehouse purchase, and large expansion. Rates: 6–13% APR (lowest), Terms: 5–25 years, Amounts: Up to $5M. Requires 2+ years in business.

Industry-Specific Challenges

Inventory Management: Inventory ties up significant capital. Lines of credit provide flexible access to purchase inventory when needed, improving cash flow.

Payment Terms: B2B payment terms can be 30–60 days. Working capital loans bridge gaps between delivering products and receiving payment.

Thin Margins: Wholesale and distribution often has tight profit margins. Lenders want to see consistent revenue and ability to cover loan payments comfortably.

Qualification Requirements

  • Time in Business: 6+ months (12+ months preferred, 2+ years for SBA)
  • Monthly Revenue: $10,000+ (higher preferred)
  • Credit Score: 600+ (higher scores get better rates)
  • Supplier Relationships: Established suppliers help

Frequently asked questions

Can I finance inventory purchases?
Yes, lines of credit are ideal for inventory. Draw as needed for bulk purchases or new product lines, then repay as inventory sells. Pay interest only on what you use.
What's the best loan for warehouse equipment?
Equipment financing is best. Equipment serves as collateral, rates are competitive (6–30% APR), and approval is fast (24–72 hours). Terms typically 2–7 years.
Can distributors get financing for vehicles?
Yes, equipment financing is ideal for delivery vehicles. Vehicle serves as collateral, rates are competitive, and approval is fast. Can finance trucks, vans, and fleet vehicles.

Ready to get funded?

Apply once and get a clear funding offer in 24–72 hours — no hard credit pull to pre-qualify.

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