Lendus.

Invoice Finance for Wholesalers & Distributors

Move large volumes with thin margins by unlocking cash from your sales ledger — stop letting slow-paying retailers squeeze your working capital.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Rates

0.5% – 2.0%

of invoice value

Advance

Up to 90%

of invoice value

Facility Size

£50k – £15m

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Why wholesale & distribution businesses use invoice finance

Wholesale and distribution businesses operate on tight margins while moving large volumes of goods, creating enormous pressure on working capital. Stock must be purchased and paid for upfront, but retailers and trade buyers routinely take 30, 60, or even 90 days to settle invoices. A single large retail customer taking extended terms can consume millions of pounds of working capital while the wholesaler still has to pay suppliers, warehouse costs, and delivery expenses. Invoice finance directly addresses this by unlocking up to 90% of unpaid invoice value within 24 hours, allowing wholesalers and distributors to replenish stock, meet supplier payment terms, and win new accounts without being held back by their debtors' payment habits.

Finance types available

Invoice Factoring

Rate
0.5% - 1.75%
Advance
Up to 85%
Control
Factor collects from your customers

Best for: Smaller wholesalers supplying a large number of independent retailers who want collections managed and bad debt risk reduced

Invoice Discounting

Rate
0.6% - 2.0%
Advance
Up to 90%
Control
You maintain customer relationships

Best for: Established distributors supplying well-known trade customers who want low-cost, confidential funding at scale

Selective Invoice Finance

Rate
0.9% - 2.5%
Advance
Up to 85%
Control
Choose which invoices to finance

Best for: Wholesalers with a few large-volume accounts who want to selectively finance their biggest, slowest-paying customers

Common challenges

Eligibility

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Market context

UK wholesale and distribution contributes approximately £130 billion to GDP and employs over 1.1 million people. The sector consistently features in the top three industries using invoice finance in the UK, reflecting the high-volume, low-margin nature of the business. UK Finance data indicates that wholesale distribution is one of the largest users of invoice discounting by total facility size.

Frequently asked questions

Our margins are very thin — is invoice finance still cost-effective?
For wholesalers and distributors, the cost of an invoice finance facility is typically 0.5–2.0% of invoice value, which must be weighed against the benefit of having cash immediately rather than waiting 60–90 days. For businesses turning over millions of pounds, the alternative cost of a bank overdraft or the opportunity cost of missed stock purchases usually makes invoice finance clearly worthwhile.
We supply a mix of large retailers and small independents — can invoice finance handle that?
Yes. Most providers will fund invoices across your entire debtor book, though concentration limits may apply if a single large retailer accounts for a very high percentage of your sales. Smaller independent customers may be subject to lower advance rates if their creditworthiness is harder to assess.
Can we use invoice finance to take on a large supermarket or buying group account?
Yes — winning a contract with a major retailer or buying group is often exactly the catalyst that makes invoice finance essential. Large accounts mean large invoice values and often longer payment terms. A well-structured facility can grow to match the size of the contract, giving you the confidence to fulfil it without working capital becoming a constraint.
What happens if a customer returns goods or raises a credit note against an invoice we have already funded?
Returns and credit notes are handled as part of normal ledger management. The funded amount against a disputed or credited invoice would be adjusted, and your facility limit recalculated accordingly. This is standard practice and providers experienced in wholesale distribution are well set up to handle routine credits and returns.
Do we need to finance our entire debtor book or can we pick and choose?
This depends on the type of facility. Whole-turnover factoring and invoice discounting typically require you to assign all eligible invoices, which allows the provider to offer lower rates. Selective invoice finance lets you choose specific invoices or customers, giving more flexibility but usually at a higher cost per invoice.

Related industries

Manufacturing

Guides and resources

What Is Invoice Discounting? Factoring vs Discounting Invoice Finance vs Business Loan Best Factoring Companies

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