Wholesale and Distribution Business Loans 2026: 10 Best Lenders Compared

The best wholesale business loans in 2026 depend on which part of your cash cycle is stuck. For a distributor that needs working capital this week, especially after a bank has passed, Byzfunder, Credibly and SBG Funding underwrite on bank deposits and can fund in about a day. If the cash is tied up in unpaid invoices from creditworthy customers, invoice factoring through a provider like altLINE advances most of the invoice in a day or two. For a large inventory order from a manufacturer, Kickfurther pays the supplier directly. For an established distributor with strong credit buying a warehouse or another company, an SBA loan through Live Oak Bank will usually cost the least.

Wholesale and distribution businesses run on a timing gap that general small business loan guides skip over. You pay a manufacturer on net 10, net 30 or up front, especially for imports. The goods sit in your warehouse, then ship to customers who pay on net 30, net 60 or net 90. A large retail customer places its biggest order of the year, and you have to buy the product before you can fill it. Sales can be growing while the bank balance shrinks. The right distribution financing covers the gap between paying your supplier and getting paid by your customer, without a repayment schedule that creates a new gap of its own.

What is wholesale financing?

Wholesale financing, in the business sense, is funding for companies that buy goods in bulk from manufacturers and resell them to retailers, contractors, restaurants or other businesses. A wholesale business loan can pay for inventory, supplier deposits, freight and duties, payroll, warehouse costs or the gap while customer invoices are outstanding.

The phrase has other meanings that this page does not cover. Banks use "wholesale funding" for money they raise from other institutions rather than from deposits. In mortgages, "wholesale lending" means a lender that works through mortgage brokers. And manufacturers' finance arms offer floor-plan lines to dealers to stock high-value units. If you searched for one of those, this comparison is not about them.

How we ranked the best wholesale and distribution business loans

In November 2026 we reviewed 10 lenders and funders that wholesalers and distributors use for working capital, inventory, receivables and long-term financing. Every figure in the table and reviews comes from the provider's own public website or the SBA, listed in the references at the bottom of this page. We weighted six factors based on how distribution businesses actually get paid:

• Speed to funding (20%). Supplier deadlines, volume discounts and customer orders do not wait. Same-day and next-day funding score highest.
• Credit and qualification access (20%). Minimum credit score, time in business and revenue floor. A fast-growing distributor can look thin on paper because its cash is sitting in receivables.
• Fit for the receivables float (20%). Whether the product works for a business whose customers pay on net 30 to net 90, and whether it involves your customers.
• Use-of-funds flexibility (15%). Inventory, freight, payroll and warehouse costs need flexible working capital. Products limited to one invoice or one order score lower here.
• Cost transparency (15%). Whether the provider publishes a starting rate, factor rate or fee range, rather than "call for a quote."
• Funding capacity (10%). Maximum amounts, since a regional supplier and a national distributor need different scale.

Byzfunder publishes this page and appears in the ranking. We applied the same factors to every company, including ours, and we list where Byzfunder is not the best fit. We did not include customer review scores because we could not verify them consistently for every provider.

Best wholesale business loans: top 10 compared

Figures are each provider's own published terms as of November 2026. They change often and are not quotes. Confirm current terms directly with each provider before you apply.

How the products differ: Byzfunder's merchant cash advance (MCA) is a purchase of future receivables priced with a factor rate, not a loan. Its Term Loan is offered through its affiliate Byzwash with fixed payments. ByzFlex is revenue-based revolving capital, a separate product from a bank line of credit. altLINE buys specific invoices at a discount. Kickfurther is a consignment agreement for inventory. OnDeck, Bluevine and the SBA lenders charge interest. In states with commercial financing disclosure laws, including California and New York, covered offers from these providers come with a standardized disclosure that includes an estimated APR, so you can compare offers side by side.

In-depth reviews of the best wholesale and distribution business loans

Byzfunder, for fast working capital for distributors banks turned down

Byzfunder is a direct lender that funds small businesses from its own balance sheet. It has provided $2 billion in financing to more than 35,000 businesses since 2019. Underwriting reads your business bank deposits alongside credit, so a distributor whose deposits look lumpy because large customers pay on net 60 can still get a full review. You keep and collect your own receivables, and your customers are not involved. Checking eligibility does not require a hard credit pull, and approved files can be funded the same day.

Byzfunder offers three products. The MCA advances $5,000 to $500,000 against future receivables, with terms of 3 to 15 months and a prepayment discount, and it suits a single defined need like a bulk buy at a supplier discount. The Term Loan, offered through Byzwash, has predictable fixed payments. ByzFlex is revenue-based revolving capital for distributors with repeat purchasing needs: you request funds, repay, and can request again as the balance pays down. The MCA credit floor is 525 and ByzFlex is 550. Byzfunder generally looks for a year or more in business and $20,000+ in monthly revenue. Meeting those floors does not guarantee approval.

Byzfunder does not offer invoice factoring or purchase order financing. The tradeoff is cost: factor-rate pricing depends on the file, and an established distributor with strong credit and time to wait will usually pay less through an SBA lender or bank. Byzfunder is the better fit when speed and access matter more than the lowest possible rate.

• Location: New York, NY
• Year founded: 2019
• Price range: Factor rate (MCA); fixed payments (Term Loan); pricing varies by file
• Services: MCA, ByzFlex revenue-based revolving capital, Term Loan via Byzwash
• Best for: distributors with steady deposits who need working capital this week

Credibly, for distributors with steady deposits who need money in hours

Credibly's working capital product advances $25,000 to $600,000, with factor rates starting at 1.11. Approval can come in as little as 2 hours and funds can arrive as soon as 4 hours after you sign. Requirements are published: 550+ FICO, 6+ months in business and $20,000+ in average monthly deposits. Credibly uses a soft credit inquiry to apply. Repayment is daily or weekly over 6 to 24 months at a fixed factor rate.

Credibly is a strong fit for a distributor with consistent weekly deposits that needs to move on a buy quickly. Daily repayment while your customers pay on net 60 can pinch, so model the payments against your collections. The $25,000 minimum rules it out for very small needs.

• Price range: Factor rates from 1.11
• Services: Working capital, business lines of credit, SBA and equipment options
• Best for: distributors with $20,000+ in monthly deposits and a time-sensitive buy

SBG Funding, for larger distributors and lower credit scores

SBG Funding offers financing from $5,000 to $10 million, with decisions in under 24 hours. Its stated minimums are among the lowest on this list: 500+ FICO, 6+ months in business and $150,000+ in annual revenue, and applying does not affect your credit score. Term loans run 6 to 48 months with weekly or monthly payments, and rates start at 1.25% per month, one of the few published starting prices among alternative lenders.

For a growing distributor that has outgrown a $500,000 ceiling but is not ready for SBA paperwork, SBG is a practical middle ground. The starting rate is for top-tier files, so expect your actual offer to vary with credit and revenue.

• Price range: Rates from 1.25% per month (term loans)
• Services: Term loans, revenue advances, equipment financing, SBA loans
• Best for: distributors needing more than $500,000 or with credit in the 500s

altLINE, for factoring invoices from creditworthy customers

altLINE is the invoice factoring arm of The Southern Bank, and it runs a dedicated factoring program for wholesale and distribution companies. It typically advances 80% to 90% of an invoice's face value, with the cash deposited 24 to 48 hours after you submit the invoice, depending on your customer's receipt and acknowledgment of the goods. Its factoring fee is generally 1% to 5% of the invoice, and you receive the remaining value, minus fees, when your customer pays. Approval rests largely on your customers' ability to pay, so it is open to businesses regardless of the owner's credit history.

The tradeoff is that factoring involves your customers. They pay the factor, and altLINE says it prefers creditworthy, medium-sized and large customers and will not factor invoices from customers who consistently avoid paying. For a distributor with big-box or institutional customers on net 60 or net 90, that is often acceptable and can be cheaper than a cash advance. For a distributor whose need is not tied to specific invoices, it is the wrong tool.

• Price range: Factoring fee generally 1% to 5% of the invoice
• Services: Invoice factoring
• Best for: distributors with large, creditworthy customers on long terms

Kickfurther, for funding large inventory orders from a manufacturer

Kickfurther runs an inventory funding program for distributors. It pays your manufacturer directly, and you make no payments until you receive the inventory and start selling it, on a schedule set around your sales cycle. It describes the arrangement as a consignment agreement, not a loan. Its distributor program offers up to $5 million and asks for at least $500,000 in trailing 12-month revenue. Once a deal is approved and goes live, most deals fund within a day. Cost is a percentage-based funding fee plus monthly consignment fees, and Kickfurther says fees fall with repeat use.

Kickfurther fits a distributor that needs a large production order funded before a seasonal surge or a major customer order. It only pays for inventory, not payroll, freight or warehouse costs, and the revenue floor rules out smaller distributors.

• Price range: Funding fee plus monthly consignment fee
• Services: Inventory funding for brands and distributors
• Best for: distributors with $500,000+ in annual revenue buying large orders

OnDeck, for established distributors with fair credit

OnDeck has funded more than 185,000 businesses and delivered over $25 billion since 2006. Term loans run $5,000 to $400,000 with repayment terms up to 24 months, and lines of credit run $6,000 to $200,000. Minimums are 625 personal FICO, 1 year in business and $100,000 in annual revenue. Same-day funding is available after approval when you meet its timing cutoffs, and checking eligibility does not require a hard credit pull.

OnDeck suits a distributor with a year of steady revenue and decent credit who wants an interest-bearing loan or line instead of a factor-rate product. Payments are fixed, so check that the schedule fits your collection cycle.

• Year founded: 2006
• Services: Term loans, lines of credit
• Best for: distributors with 625+ credit and $100,000+ in annual revenue

Bluevine, for distributors who want a revolving line

Bluevine offers business lines of credit up to $250,000 with rates as low as 7.8% for top-qualifying customers. Approved funds can arrive in as fast as 24 hours. To qualify, your business must be a corporation or LLC in business 12+ months, earning $10,000 in monthly revenue, with a 625+ personal FICO score. Applying does not affect your credit score.

A revolving line fits a distributor that places many smaller supplier orders and wants to borrow only what each one needs. The corporation-or-LLC requirement excludes sole proprietors, and the $250,000 ceiling limits larger distributors.

• Price range: From 7.8% for top-qualifying customers
• Services: Business lines of credit, business checking
• Best for: incorporated distributors with 625+ credit and frequent smaller orders

National Funding, for pairing equipment and working capital

National Funding has served more than 100,000 businesses and funded $7 billion+ since 1999. Working capital runs $6,000 to $500,000 with daily or weekly payments over 4 to 24 months, and equipment financing goes up to $150,000 with monthly payments over 2 to 5 years. Most of its customers have a personal FICO of 600 or higher, and funds can arrive as soon as the next business day.

National Funding fits a distributor that needs a forklift, racking or a delivery vehicle along with working capital and wants both from one company. It may refer applicants it cannot fund to partners.

• Location: San Diego, CA
• Year founded: 1999
• Services: Working capital, equipment financing and leasing
• Best for: distributors that need equipment and working capital together

Kapitus, for comparing several financing types in one place

Kapitus was founded in 2006 as Strategic Funding Source and reports more than $5 billion in financing accessed through it as of March 2024. It offers term loans and lines of credit from $5,000 to $5 million, revenue-based financing up to $2.5 million with daily, weekly or monthly payments, plus SBA loans, equipment financing and invoice factoring.

The range of products is useful for a distributor still deciding between working capital and factoring. Kapitus does not publish credit or revenue minimums on the pages we reviewed, so expect to learn your fit after you apply.

• Year founded: 2006
• Services: Term loans, lines of credit, revenue-based financing, SBA loans, equipment financing, invoice factoring
• Best for: distributors comparing structures with one provider

Live Oak Bank, for established distributors seeking the lowest long-term cost

Live Oak Bank is an SBA Preferred Lender, which means it can approve SBA loans without first sending them to the SBA. It offers SBA 7(a) loans up to $5 million and SBA 504 loans for real estate and large equipment, and it requires a minimum 680 FICO to be considered. Its stated timeline is up to 10 business days for underwriting review and 30 to 45 days for SBA approval and closing.

For a distributor with several years of tax returns and strong credit who is buying a warehouse, a fleet or a competitor, an SBA loan will usually cost the least of anything on this list. It is the wrong tool for a supplier invoice due next week.

• Services: SBA 7(a), SBA 504
• Best for: established distributors with 680+ credit and time to wait

Top distribution financing by specialty

No single provider wins on every factor. Use the specialty rankings below to match the product to the cash problem.

Best distribution financing for fast working capital

Best factoring for distributors

Best funding for inventory and supplier orders

Best wholesale business loans for bad credit

Distribution financing options: inventory, receivables and purchase orders

Most distributors run short of cash in one of three places. Each has a different best tool.

1. Cash tied up in inventory. You bought stock ahead of demand and it is sitting in the warehouse. Inventory financing pays for that stock: a lender advances against the inventory as collateral, a provider like Kickfurther pays the manufacturer and is repaid as the goods sell, or you use general working capital. Inventory financing works best when you know the goods will sell inside the repayment window. If turns are slow, a long schedule matters more than a low fee.

2. Cash tied up in net-terms receivables. You shipped the order and invoiced on net 30, net 60 or net 90. Two products target this gap:

• Invoice factoring sells specific invoices to a factor for an advance, usually 80% to 90%, and the factor collects from your customer. It is priced on your customer's credit, not yours.
• Accounts receivable financing borrows against your receivables as collateral while you keep collecting. Banks and asset-based lenders offer it, usually to larger distributors with audited books.

Deposit-based working capital solves the same gap without touching specific invoices: the provider looks at your deposits as a whole, and your customers keep paying you.

3. Cash needed to fill a new purchase order. A customer sends a large order and you need to pay your supplier before you can ship. Purchase order financing pays the supplier directly for that order and is repaid when your customer pays. It works for distributors who resell finished goods with good margins and creditworthy customers. Our guide to purchase order financing covers how it works, what it costs and when general working capital is the simpler fit.

If your cash problem moves between all three during the year, a revolving product usually fits better than three separate ones. Our guide to funding for distributors walks through the receivables float in more detail.

Which distributor financing providers offer flexible access to working capital?

Distributors with recurring purchasing needs, such as monthly supplier orders or seasonal stocking, are usually better served by a revolving product than by a series of lump sums. In this comparison:

• Byzfunder ByzFlex is revenue-based revolving capital: you request funds, repay, and can request again as the balance pays down. The credit floor is 550.
• Bluevine offers lines of credit up to $250,000 for incorporated businesses with 625+ credit.
• OnDeck offers lines of credit from $6,000 to $200,000 with a 625 credit minimum.
• Kapitus offers lines of credit from $5,000 to $5 million.

For a single large buy, a lump-sum MCA or term loan is simpler, and you are not paying to keep capacity open. For a wider comparison of revolving and revenue-based options, see our ranking of revenue-based financing companies.

Wholesale business loan rates: what distributors actually pay

Wholesale business loan rates vary more by product than by provider:

• SBA loans are the cheapest. The SBA caps the rate lenders can charge on 7(a) loans as a spread over a base rate, and the program allows up to $5 million.
• Bank and fintech lines of credit start lower for top-tier files. Bluevine advertises rates from 7.8% for top-qualifying customers.
• Term loans from alternative lenders sit in the middle. SBG Funding advertises rates from 1.25% per month.
• Invoice factoring charges a fee per invoice. altLINE's is generally 1% to 5% of the invoice, and the effective cost rises the longer your customer takes to pay.
• MCAs and revenue advances use a factor rate. Credibly advertises factor rates from 1.11.

A factor rate is a multiplier, not an interest rate. Here is how the math works on a $100,000 advance:

These figures are illustrative only and are not a quote. Actual pricing depends on your deposit history, time in business and credit. The term matters as much as the factor: the same total cost repaid over 6 months is more expensive in annual terms than over 15 months. Where state law requires it, your offer will include an estimated APR so you can compare it with a loan. For a distributor, the useful comparison is cost against margin: if a supplier offers a 2% early-payment discount, financing that costs less than the discount over the same period pays for itself.

Wholesale and distribution business loan requirements

Most wholesale business loans ask for the same core items:

• Credit score. Floors in this comparison run from 500 (SBG Funding) through 525 (Byzfunder MCA), 550 (Credibly, Byzfunder ByzFlex), 600 (typical National Funding customer) and 625 (OnDeck, Bluevine) to 680 (Live Oak Bank). Factoring depends mainly on your customers' credit.
• Time in business. Six months (SBG Funding, Credibly) to one year (OnDeck, Bluevine, Byzfunder). SBA lenders usually want two or more years of tax returns.
• Revenue or deposits. Usually stated as monthly deposits or annual revenue. Kickfurther's distributor program asks for $500,000 in trailing 12-month revenue. Deposits and revenue are not the same thing, so read the requirement carefully.
• Bank statements. Most fast providers review recent business bank statements in place of full financial statements.
• For distributors specifically: an accounts receivable aging report, your largest customers and their payment terms, and supplier terms help an underwriter see that a thin month is a collections gap and not a failing business.

How to get funding for a wholesale distribution business

1. Find where the cash is stuck. Inventory, receivables and new orders each point to a different product.
2. Size the need to a specific cost. Price the supplier order or the collections gap you are funding, not a round number.
3. Pull three to six months of business bank statements and a receivables aging report. These are the main documents for fast providers and factors.
4. Compare at least two offers on total repayment, not just the payment amount.
5. Check the repayment schedule against your collections. If customers pay on net 60, a daily payment starts 60 days before the money it is meant to cover arrives. Our guide on how to get working capital covers the documents in more detail.

How fast can a distributor get funded?

Fast providers can fund the same day or within 24 hours after approval: Byzfunder, Credibly, OnDeck and SBG Funding all advertise same-day or under-24-hour timelines, and National Funding can fund the next business day. altLINE deposits factoring advances 24 to 48 hours after you submit an invoice, once you are set up. Kickfurther deals usually fund within a day after approval and going live. SBA loans usually take 30 to 45 days or more. If a supplier deadline is close, apply early in the week with bank statements ready.

Wholesale and distribution financing FAQ

Is there funding for wholesale importers?

Yes. Importers face a longer float than domestic distributors, because overseas suppliers often want a deposit at order and the balance before shipping, followed by freight, duties and weeks in transit. The same products apply: working capital for deposits and duties, inventory funding that pays the manufacturer directly, and factoring once the goods are sold and invoiced. Build the full landed cost and transit time into the amount and term you request.

What are the best banks for wholesale businesses?

Banks are the cheapest option for distributors with two or more years of tax returns, strong credit and collateral. SBA lenders such as Live Oak Bank offer 7(a) loans up to $5 million, and many banks offer asset-based lines secured by receivables and inventory. Expect more documentation and weeks, not days, to close.

How much money do you need to start a wholesale business?

It depends on your product, minimum order quantities and the payment terms you can get from suppliers. Most of the financing on this list requires 6 to 12 months of sales, so a new wholesale business usually starts with owner capital, supplier credit terms or an SBA loan. Once you have deposit history, the faster options open up.

Does Byzfunder offer factoring or purchase order financing?

No. Byzfunder offers MCA, ByzFlex revenue-based revolving capital and a Term Loan through Byzwash. You keep your receivables and collect from your own customers. If you specifically need factoring or purchase order financing, altLINE and Kapitus offer factoring, and our purchase order financing guide explains how PO funding works.

Will my customers know I am using financing?

With invoice factoring, usually yes: the factor verifies the invoice and your customer pays the factor. With working capital such as an MCA, term loan or line of credit, your customers are not involved and keep paying you as usual.

Can food and beverage distributors get funding?

Yes. Food distributors often turn inventory faster than other wholesalers, which suits shorter repayment terms, but they carry thin margins and spoilage risk. Size the request to a specific order and check the repayment schedule against how quickly your customers pay.

Does Byzfunder require collateral?

The MCA is a purchase of future receivables, and Byzfunder underwrites on your deposit history and overall file rather than a lien on specific inventory or invoices. Your agreement will spell out the terms. An MCA is not consequence-free: if receivables are not delivered as agreed, the agreement's remedies apply.

What the data means for distributors in 2026

No provider in this comparison is best on every factor. A distributor whose customers pay on net 90 is not well served by a product with daily payments starting tomorrow, and a distributor with one urgent supplier invoice does not need to set up a factoring relationship. Start with where the cash is stuck and when you need it, then compare total repayment.

For distributors who need working capital fast, especially those a bank has already declined, Byzfunder's same-day funding, 525 MCA floor and deposit-based underwriting, with no involvement from your customers, make it the most direct path. For cash stuck in invoices from large, creditworthy customers, altLINE's factoring is built for the job. For large manufacturer orders, Kickfurther pays the supplier directly. For established distributors with time and strong credit, SBA financing through Live Oak Bank costs the least. Retailers buying from you face their own version of this cycle, which we cover in our comparison of retail business funding, and manufacturers upstream of you face another in our guide to manufacturing business funding.

Important notice: Byzfunder provides funding to businesses nationwide. An MCA is the purchase of a portion of future receivables at a discount and is not a loan. Term Loans are offered through Byzwash. Approval, amounts, factor rates and terms vary by business and are not guaranteed. Competitor information reflects each provider's public materials as of November 2026; confirm current terms directly with each provider. This guide is educational and is not financial, legal or tax advice. Where required, state commercial financing disclosures are provided with each specific offer.

References

1. Byzfunder. Financing solutions. https://byzfunder.com/financing-solutions
2. Byzfunder. Funding for distributors. https://byzfunder.com/resources/distributor-business-funding
3. Credibly. Working capital loans. https://www.credibly.com/working-capital-loans/
4. SBG Funding. Small business financing. https://sbgfunding.com/
5. altLINE. Factoring for wholesale and distribution companies. https://altline.sobanco.com/factoring-for-wholesale-and-distribution/
6. Kickfurther. Funding for distributors. https://www.kickfurther.com/distributors
7. OnDeck. Small business loans. https://www.ondeck.com/
8. Bluevine. Business line of credit. https://www.bluevine.com/business-line-of-credit
9. National Funding. Small business loans. https://www.nationalfunding.com/
10. Kapitus. About us; revenue-based financing. https://kapitus.com/about-us/
11. Live Oak Bank. Business loans. https://www.liveoak.bank/business-loans/
12. U.S. Small Business Administration. 7(a) loans. https://www.sba.gov/funding-programs/loans/7a-loans
13. U.S. Small Business Administration. 504 loans. https://www.sba.gov/funding-programs/loans/504-loans