WHOLESALERS

Wholesale businesses require flexible credit facilities that scale with inventory cycles and supplier demands. We structure trade finance, debtor finance, and working capital lines aligned to your cash conversion cycle. By running a full market tender across all relevant lenders, we ensure your facilities are appropriately sized, competitively priced, and built to support growth, not constrain it.

Wholesale and distribution businesses run on thin margins and heavy balance sheets, with large debtor books, high stock holdings and supplier terms that rarely match customer terms. That working-capital gap, not profitability, is usually the constraint, which is why an overdraft alone tends to be the wrong tool. Lenders scrutinise debtor concentration, where one customer at 30% to 40% of the ledger is a red flag, alongside dilution and dispute rates, stock obsolescence and turn, and how exposed margins are to the AUD, since so much stock is imported and priced in US dollars.

Invoice finance and trade finance, including import letters of credit, trade advances and structured payables, are built for this. They fund the confirmed order and the receivable, released against shipment, title and sale rather than a generic limit. The ATO position is a live issue post-COVID, and lenders now check the integrated client account and any payment plan before approving. Major retailers consolidating and pushing terms out to 60 to 90 days has squeezed distributors further. We map the cash conversion cycle across receivables days, payables days, stock turn and the peak funding need through the year, then run a tender across banks and specialist receivables and trade houses, comparing advance rates, recourse versus non-recourse, concentration caps, reserve mechanics and the true all-in cost once fees, minimums and audit charges are included, so the facility scales with turnover instead of last year's review.