Wholesale is a working-capital business wearing a trading business's clothes. Margin per unit is thin and the model depends on volume, which means most of the company's value sits in stock rather than in the bank. Suppliers — particularly overseas — frequently want payment before dispatch, while trade customers expect 30 or 60 days.
Where the cash actually sits
A distributor holding £150,000 of stock has £150,000 of capital immobilised. If suppliers require payment up front and customers pay on 60 days, the business funds both ends of the cycle simultaneously.
Seasonal buying makes it sharper: the stock for a peak has to be bought and paid for months before the peak arrives.
What operators in this sector actually fund
- Bulk stock purchases where the supplier requires payment up front
- Import deposits and shipping costs before goods arrive
- Seasonal stock built ahead of a demand peak
- Bridging the gap between paying suppliers and trade customers settling
- Warehouse equipment, racking or handling machinery
A £50,000 advance, both terms
Here is what a £50,000 advance looks like on our published rates:
| £50,000 advance | 20 weeks | 26 weeks |
|---|---|---|
| Approved advance | £50,000 | £50,000 |
| Arrangement fee (5%, deducted at funding) | −£2,500 | −£2,500 |
| Paid to your account | £47,500 | £47,500 |
| Factor rate | 1.48 | 1.55 |
| Total repayable | £74,000 | £77,500 |
| Weekly payment | £3,700 | £2,981 |
| Total cost on cash received | £26,500 | £30,000 |
Illustrative, using our published factor rates. Your own rate is set by underwriting and is stated in pounds on your agreement before you sign it.
Whether you qualify
Four minimums. Meeting them is not the same as being approved — it is the point at which applying is worth your time:
- UK limited company or LLP — incorporated and registered at Companies House.
- 6+ months trading — six months is the least we can work with.
- £25,000+ monthly turnover — consistent, and visible in the business bank account.
- Active UK business current account — this is where the underwriting actually happens.
If the requirement is specifically to pay overseas suppliers against shipping documents, trade finance may suit better. Tell us the shape and we will point you to the right product, even if it is not ours.
Why the decision being ours matters here
Distribution files show large outflows and stock-heavy balance sheets, which automated scoring reads as risk. We lend our own book, so the pattern can be assessed as the trading cycle it actually is.
Solvo funds £10,000 to £75,000 from its own book, usually within 24–72 hours of final documents. One decision, made by us — your file is not shopped around a panel. Above £75,000 we arrange the facility with a lending partner.
About 3 minutes. No obligation. Limited companies and LLPs only.
Frequently asked questions
Can we fund a bulk stock purchase?
Yes, and it is the most common use in this sector. The advance is priced against your overall trading rather than secured on the stock, which is why the decision can be quick.
Is the advance secured on our stock?
No. It is priced against trading and account behaviour. That is precisely why it moves faster than asset-based lending.
We import from overseas. Does that matter?
Not to eligibility, provided the company is a UK Ltd or LLP trading through a UK business current account. If the need is specifically document-based import payment, trade finance may be cheaper.
What does a £50,000 advance cost?
On our published rates, £74,000 total over 20 weeks (£3,700 weekly) or £77,500 over 26 weeks (£2,981 weekly), with £47,500 reaching your account after the 5% arrangement fee.
Illustrative only. Solvo Funding is a UK direct lender for limited companies and LLPs and also acts as an intermediary for facilities above £75,000. Advances are subject to underwriting; meeting the minimum criteria is not the same as being approved and we cannot guarantee an offer. Finance for limited companies and LLPs is generally not regulated by the Financial Conduct Authority.