Wholesalers are constantly trying to improve efficiency and productivity. This isn’t as simple, however, as solving a single problem. It requires access to new equipment, an increasingly larger team, advanced technology, accurate forecasting of demand, and precise inventory management.
What stops wholesalers from obtaining or implementing these things isn’t necessarily a lack of working capital. In most cases, the culprit is an elongated business cycle, one that can easily be obstructed even further by countless external circumstances.
Wholesalers typically work with bigger companies, which can take well over 60 days to pay invoices. This causes wholesalers to only buy products when they can afford them, regardless of when the products will actually be sold to their customers. They frequently pay more than they should because they cannot take advantage of upfront or bulk discounts.
And without a solid grasp of demand, it’s common for wholesalers to buy too much inventory and leave significant working capital sitting on their shelves. If it the inventory doesn’t turn quickly enough, the wholesaler might be forced to sell the products at a loss. You can only imagine how much more stressful these dilemmas can get when essential equipment breaks or the slow season sets in.
Fundture Capital has many years of experience providing Small Business Loans for Wholesalers. We can provide all types of business lending products. Contact us today for your FREE business funding consultation!
