Equipment and furniture wholesalers are constantly trying to improve efficiency and work with bigger clients. To fulfill their larger-than-average requests, they need advanced equipment and a lot of it. Inventory must be purchased when it makes sense for their budget, while additional staff can ramp up productivity and bring in more business. Bigger clients process invoices quickly but pay late. Despite all the money that goes into filling their orders, equipment and furniture wholesalers often wait over 90 days to be paid in full.
This elongated business cycle makes it very difficult to stay current on bills, let alone move forward with growth-related initiatives. Your vendors probably aren’t as lenient as you are when it comes to extending credit, even in the event of a slow period. Productivity is stifled as well because rather than devoting your full attention to filling orders, precious time is wasted sending emails and making phone calls to get a sense of when your payment will finally come in.
Unpredictable or tumultuous cash flow is particularly dangerous for equipment and furniture wholesalers because their orders are time-sensitive. They must foster relationships with vendors and maintain the resources to work around their clients’ terms. And if gathering enough cash to cover day-to-day operations wasn’t challenging enough, what happens when the business needs to grow? Additional salespeople, new technology, and extensive marketing campaigns are becoming increasingly vital for survival.
United Capital Source has many years of experience facilitating Small Business Loans for Equipment & Furniture Wholesalers. We have access to all types of business lending products. Contact us today for your FREE business funding consultation!
United Capital Source specializes in accounts receivable factoring services for equipment and furniture wholesalers. With this type of working capital loan, the business lender, or “factor,” purchases unpaid invoices for a discount price. Instead of being paid several months after an order is processed, you are paid by the business lender in just a few business days. It is now entirely up to the business lender to collect from your customer. When this happens, the business lender gives you the remainder of the first payment.
The funds can be used for just about anything. You can pay your vendors ahead of time to receive discounts or capitalize on off-season discounts on bulk purchases. Unforeseen expenses or temporary gaps in cash flow can be quickly alleviated. Having more cash on hand also allows you to work with whomever you want instead of being so desperate for cash that you’ll accept potentially-hazardous terms.
Unlike more traditional business loans, tight cash flow and a certain amount of money in your bank account are not required to access accounts receivable factoring. This is why many UCS clients sell unpaid invoices when business is slow. Arguably the biggest advantage of accounts receivable factoring, however, is predictability. When you know how much money will be flowing in and out of your business, you can cover planned expenses like tax payments and schedule long-term investments when it makes sense for your budget.
If accounts receivable factoring doesn’t sound right for you, we are happy to discuss other perfectly feasible options like short-term working capital loans or business lines of credit. Both can be crafted to have the same functions listed above, including inventory management. The latter option can allow you to regularly purchase inventory or pay bills that you otherwise wouldn’t be able to cover for another week or two. If you get an unexpectedly large invoice, a business line of credit can cover the resources required to fill the order on time. Apply now to see how much you qualify for!
|LOAN TYPES||MAX AMOUNTS||RATES||SPEED|
|Merchant Cash Advances||$7.5k – $1m||Starting at 1.09%||1-2 business days|
|SBA Loan||$50k-$10m||Starting at 5%||3-5 weeks|
|Business Term Loan||$10k to $5m||Starting at 5%||1-3 business days|
|Business Line of Credit||$1k to $250k||Starting at 8%||1-3 business days|
|Receivables/Invoice Financing||$10k-$10m||Starting at 5.8%||1-2 weeks|
|Equipment Financing||Up to $5m per piece||Starting at 5%||3-10 business days|
|Revenue Based Business Loans||$10K – $5m||Starting at 9%||1-3 business days|