The wholesale industry has gotten easier and harder over the past decade or so. While there are now more gateways for success and expansion, gaining access to these gateways is no easy task. Expenses are often tied up in the need to maintain and stabilize inventory along with the various other measures wholesalers must take to attract customers. The key is to always be able to take advantage of growth opportunities and not having to postpone crucial steps solely because you can’t afford to take them during a certain time of the year.
It turns out that wholesalers go through some of the same struggles as retailers but the former industry’s mistakes have the potential to affect a lot more people. With the help of a company like United Capital Source, you can put your wholesale business in a constant state of growth and diminish the likelihood of curveballs that could come your way.
Covering More Ground
For wholesalers, expansion and increasing staff go hand-in-hand. But unlike many other types of businesses, wholesalers cannot build a longstanding team out of just any group of people. They need experienced individuals who bring a wide array of skills to the table such as sales, customer service, advertising, and the ability to work independently. Some of the biggest wholesalers, for example, have sales reps who are independent contractors in addition to in-house sales teams that handle all customer-related responsibilities.
As if acquiring experienced staff members wasn’t expensive enough, it’s important to note that a big reason wholesalers add salespeople is to send them to trade shows and perform their own marketing efforts. One major expense creates several others. But remember, unlike similar industries, increasing salespeople is directly tied to increasing business for wholesalers.
United Capital Source specializes in small business loans geared towards companies that must increase staff as soon as possible but lack the funds to do so during certain times of the year. We offer working capital loans, merchant cash advances (a.k.a credit card processing loans), business lines of credit, and many other unsecured business loans that give you the ability to search for and train new hires without having to worry about cash flow taking a huge hit. These highly competitive business funding programs could be structured to cover most expenses associated with new hires and the majority paid off when new business starts coming in. We know sales can fluctuate tremendously month-to-month, so most of our products have repayment terms that rise and fall with sales volume.
Management Tools Of The Future
In a recent interview with Forbes, massively successful wholesaler Sock It To Me named technology as one of their most important investments. “We had issues with supply chain forecasting back in 2013 because QuickBooks didn’t give us enough of a line-of-sight into customer demand,” the company’s founder told the magazine in August.” So we’d be sitting on a lot of merchandise people didn’t want.” The solution was SAP Business One, a management software that resulted in “incredible improvement with our forecasting and ordering accuracy.”
But depending on the size of your team, implementing SAP Business One and similar software can cost thousands, and that’s just for the first year. This is a perfect example of the kind of situation our small business loans were designed for, particularly a merchant cash advance. This program supplies a lump sum that is paid back via a fixed percentage of future credit card sales. This is an ideal situation for investments that might not produce results right away. There are no strict due dates or fixed payments to stress over, meaning you can focus on using your new software to carefully develop and test out new strategies.
Getting Your Hands On Their Secret Weapon
As helpful as new technology and salespeople can be, we are well-aware that some of the problems the Sock It To Me founder touched on are almost unavoidable. And if these problems happen at the wrong time (the slow season, after essential equipment breaks, etc), you’re forced to sell inventory at lower prices just to pay your bills at the end of the month. Some of our wholesale clients have utilized working capital loans to cover business expenses during cash flow shortages of this nature. Another common outcome of unresolved orders is the hesitation to place larger orders. You don’t want to spend so much on an order that isn’t guaranteed to generate a strong ROI.
The fickleness of wholesale customers and need for bulk purchasing can be easily neutralized with small business funding from United Capital Source. Banks will make you wait months to receive funding but we can have money in your bank account in a matter of days, even if you have bad credit. We know vendors often offer discounts for buying large amounts of inventory during slower periods of the year. Yes, there is risk attached to buying so much inventory but we can arrange your financing to minimize negative impact on cash flow as you pay off the debt.
Less Risk, More Rewards!
Whether you receive an SBA Loan, merchant cash advance, working capital loan or business line of credit, our business funding programs are all arranged to stabilize your financial health for years to come. Your largest competitors aren’t limited to only the safest investments, so neither should you. We can customize your terms to offset the always probable events of sudden expenses or your investment taking longer than usual to provide returns. And remember, we know this industry inside and out, so we would only offer to help if we believed your investment was a wise one. Let’s work together to craft the perfect small business loan for you!