Finance to fuel your Wholesale business

Best Funding Options for Your Wholesale Business

As a wholesale business, you understand that external funding is often necessary to support your growth and expansion. However, not all funding options are suitable for every business, and it’s important to find the right solution for your specific needs.

At Aurora Capital, we specialise in finding the most appropriate funding solutions for wholesale businesses. We understand that your funding requirements may vary, and we offer several types of business loans with differing eligibility criteria, funding values, and usage options.

Whether you need to address a short-term cash flow issue or secure financing to purchase new inventory, we have a solution that can help.

Unsecured Business Loans

You might not always have assets to use as collateral for a loan. In such cases, unsecured business loans can be an ideal option as they don’t require collateral. However, it’s worth noting that unsecured loans typically have higher interest rates than secured loans due to the increased risk to the lender as a result of the lack of collateral. While you may not be able to borrow as much with an unsecured loan as you would with a secured loan, you can still access a substantial amount of credit. Unsecured loans are versatile and can be used for any business-related expense, making them an appropriate option for wholesale businesses. The loan amounts usually range from £1,000 to £500,000 and can be repaid over a maximum period of six years.

Find out more about unsecured business loans

Revolving Credit Facility

For wholesale businesses, revolving credit facilities can provide a flexible credit line that functions similarly to an overdraft. This credit option can be advantageous for businesses that require a financial cushion to address unexpected expenses or cash flow challenges. Revolving credit facilities typically offer loan amounts ranging from £10,000 to £2 million and can be borrowed over a two-year period. As funds are borrowed, the available credit decreases, but once the borrowed amount is repaid, the original amount becomes available again and can be used repeatedly as needed.

Find out more about revolving credit facilities

Recovery Loan Scheme

For wholesale businesses, recovery loans can provide much needed help to overcome financial difficulties. This type of borrowing is appropriate for businesses that have experienced setbacks and require a larger sum of money to move forward. Recovery loans typically offer loan amounts ranging from £25k to £500k and can be borrowed over a maximum period of six years.

Find out more about recovery loans

Merchant Cash Advance

For wholesale businesses, merchant cash advances are a borrowing option designed to provide quick access to funds with flexible repayment terms. Unlike traditional loans, this option involves a lender providing an upfront cash advance in exchange for a percentage of future credit and debit card transactions. Repayment of the advance and associated fees is typically done through automatic daily or weekly deductions from the business’s credit card sales until the loan is fully repaid. For instance, a lender may agree to deduct 10% of every card transaction until the loan and agreed interest are paid off. The amount repaid increases with higher sales, facilitating faster loan repayment. However, during slow sales periods, there’s no pressure to make high payments, and businesses only pay what they can afford.

Find out more about merchant cash advances

Invoice Finance

It’s not uncommon for wholesale businesses to offer payment periods of 30, 60, or 90 days. However, this can pose challenges to cash flow management. When multiple invoices are outstanding, your business might not have immediate access to funds to purchase new stock or pay suppliers and staff until the previous invoices are paid. Invoice finance can help address this issue. With this option, a lender will pay up to 90% of the value of your outstanding invoices, and you pay the lender back when your clients settle their accounts, plus interest.

Find out more about invoice financing

Using Finance to Purchase More Stock

Wholesale businesses require a lot of capital to operate effectively, which can be difficult to come by without the help of external funding. Wholesale business loans are a form of financing designed to assist businesses in managing their cash flow, expanding operations, and addressing unexpected expenses.

Wholesale businesses hold onto a large amount of stock to sell onto their customer base. A Business Loan is a great way to increase your stock holding or look to bring in a new product that you haven’t been able to do before. Not only does this allow you to potentially grow your business, but funding may also allow you to save some money from your suppliers. By buying in bulk or purchasing a large order it may allow you to negotiate better payment terms with your suppliers, which in turn will add to your bottom line.

There are many different types of loans which can be used for different things, so it’s important to consider all your options before deciding which loan to go with.