Invoice Factoring For Wholesalers/Importers
Wholesalers/importers rely heavily on invoice factoring due to the time gap between having to pay upfront to manufacturers and collecting invoice payments from retailers. Most items in this industry are manufactured overseas and international manufacturers demand expensive upfront payment for their services. After paying the manufacturers, wholesalers/importers must wait months to receive the inventory. Afterwards, they sell the newly obtained inventory to retailers but then have to wait at least a few more months before they start collecting invoice payments.
Given that wholesalers/importers have a low profit margin, this long wait time is detrimental to them. This issue is further aggravated by the COVID-19 pandemic, which has forced many retailers to delay invoice payments to a greater extent than before. With these adverse conditions, how can wholesalers/importers sustain their daily operations? This is where invoice factoring comes in.
Invoice factoring helps significantly as the factoring company purchases outstanding invoices from the wholesaler/importer and gives them advance payments for the invoices provided. Now, wholesalers/importers will have sufficient working capital that can be used to maintain their daily operations. It is also incredibly easy to qualify for invoice factoring because factoring companies focus more on the customers’ creditworthiness rather than personal credit history.
For wholesalers/importers, invoice factoring is a great alternative financing resource, especially in the COVID-19 economy. With our extensive experience working with wholesalers/importers, Accel Business Funding can provide the invoice factoring services that will meet your company’s needs.