Distributor Financing - Invoice Factoring

Supply Chain Finance Solutions: Expedite cash flow using invoice factoring as a distributor financing solution, with distributor factoring rates as low as 1%.

Distributor Financing Solutions that Expedite Cash Flow

Cash flow is critical to every type of business, including U.S. distributors who make it possible for all kinds of goods to get to retail stores, e-commerce retailers and other points of sale.

Similar to other businesses that wait for their customers to pay via accounts receivable invoices, distributors can also experience cash flow challenges that have the ability to derail their growth.

Distributors often extend payment terms to their own customers of 30, 60, 90 days (or even longer). However, these same distributors may be required to pay manufacturers up front, and must bear the cost of transporting goods in advance of customer payment. In many cases distributors are required to pay their suppliers right away, rather than on terms.

This is exactly the type of supply chain finance scenario that makes invoice factoring a useful distributor financing tool! 


Distributor Financing: Benefits of Factoring Invoices

Invoice factoring allows distributors to free up the working capital that would otherwise be tied up in their accounts receivable invoices. Instead of waiting for customers to pay, they can receive an advance on their customer’s invoice on the same day it is generated, when they factor it with us.

Capital in hand, distributors are then free to put the money back into growth initiatives; such as:

  • Reinvesting more quickly in the inventory needed to take on new business or attract more customers
  • Adding new product lines to expand their customer base
  • Making large inventory purchases to satisfy orders of larger clients
  • Taking advantage of volume discounts or negotiating better payment terms with their suppliers – and more

Working capital freed up by invoice factoring can also be used to improve cash flow needed for operational expenses, equipment purchases and repairs, expansion and other capital expenditures.

Use the distributor invoice factoring calculator to find out how much working capital you could access by factoring invoices, instead of waiting for customers to pay.

Supply Chain Finance Scenario:
Distributor Financing through Invoice Factoring

The Dynamic Distribution Company decides to grow their customer base by adding product lines from a manufacturer that has strong consumer demand. The manufacturer requires all new distributors to carry their whole line of products and to commit to selling through a set number of introductory retail starter kits within 90 days of launch.

The Dynamic Distribution Company wants to take advantage of the manufacturer’s 8% discount on accounts paid upon receipt of delivery rather than extended terms. After exploring supply chain finance options, they decide to use our distributor financing tool and start factoring invoices with DB Squared.

Working capital in  hand, they are now free to take advantage of the manufacturer’s discount. Here’s how the process works:

  • They factor their accounts receivable invoices with us for a small fee (called a factoring fee) and get free same day funding of an advance up to 98% of the face value amount.
  • The remaining amount (less the factoring fee) is held as a reserve against the invoice. As each of the factored invoices are paid in full, the reserve amounts are also released back to the distributor.

Contact us to request more information about distributor financing options by calling 866-855-3640 or completing the quick quote form shown below. Get answers to your questions about distributor financing in 24-48 hours, or even faster. When approved to factor invoices, get your first funding and start unlocking working capital in as little as 3-5 business days.

Distributor Financing: Invoice Factoring Calculator

Find out more about Invoice Factoring by using our opportunity cost calculator to estimate whether invoice factoring could give you access to working capital needed to grow your distributorship.

Opportunity Cost Calculator

Use our invoice factoring calculator to determine whether factoring receivables could expedite cash flow in your business.

  • Your Current Total Accounts Receivable
    $1,000 $5,000,000+
  • Your Average Customer Invoice Amount
    $0 $250,000+
  • Advance Rate for Factored Invoices (Advances usually range from 85-98%)
    85% 98%
  • Factoring Fee (Factoring fee usually ranges from 1-5%)
    1% 5%

Apply Now

  • Expedite working capital tied up in customer invoices, without waiting for customers to pay Working Capital Unlocked $0
  • Average Factoring Fee $0

Request a Quote

Request a quote for distributor financing invoice factoring services:

Get the working capital you need to grow your business!

Using Receivables Financing as a Distributor Financing Solution

The same challenges that affect other B2B organizations also drive the need for supply chain finance — having the ability to take on new business, take advantage of manufacturer discounts for large purchases or purchase inventory needed to satisfy larger clients are just a few of the times when a distribution company might be looking for a supply chain finance tool.


Distributors that factor with us eliminate the weeks – or months – they might otherwise spend waiting for customers to pay. They can focus on growing their business instead of chasing down customer invoices.

When supply chain factoring companies like DB Squared factor invoices, we fund an advance on the invoice immediately, putting working capital into the hands of the distributors and manufacturers who factor with us right away.

Even if you are already factoring invoices, we encourage you to apply for a free, no-obligation invoice factoring proposal so you can make sure you have the best factoring agreement in place for your distribution business. When you factor invoices with us, you can expect:

  • Low factoring fees – ranging from 1-5%
  • High advances on factored invoices – up to 98%
  • No long term contracts or hidden penalties
  • Free same day funding of advances
  • No cost to apply and no hidden fees
  • No monthly minimums – factor when you choose
  • Non-recourse supply chain factoring means less financial risk for your business
  • You choose whether to invoice your customers or assign the task to us

With no long term contracts, it’s up to us to earn your on-going business. We do this by providing you with a consistently high level of prompt, professional customer service from a dedicated account manager. As our client, you’ll be working with someone that understands and appreciates the unique needs of your business.