Pete Tuvey, Fleximize

How wholesalers can solve their cash concerns

Cash flow and capital are always tricky for wholesalers making a new investment – especially in the current climate – but Fleximize CEO Peter Tuvey says there are options to consider


In an industry where inventory management is key, maintaining healthy cash flow can feel like a seemingly impossible balancing act.

Alternative finance providers offer unsecured and secured small business loans tailored specifically to the needs of wholesale distribution businesses, such as offering payment holidays to help balance the books during quieter trading months. Some can even offer funding in as little as 24 hours with competitive rates.

Small business loans are, therefore, a good option for wholesalers who need a boost of working capital to bridge both long- and short-term cash flow shortages. When looking for a funding partner, be sure to prioritise lenders who offer no early repayment penalties and are willing to recalculate overall interest if you want to repay early.


Delayed customer payments are another major obstacle many in the wholesale industry face and it’s an issue that can have a significant impact on cash flow.

With invoice financing, businesses can take out a loan against the value of outstanding invoices, making it an excellent way to free up cash for wholesalers that have to deal with delayed customer payments.

As such, invoice finance is a good solution for businesses that need a longer-term solution for dealing with cash flow shortages caused by delayed customer payments.

Once you’re set up, most invoice financing companies will lend you 80% of the total value of an invoice as soon as it comes in, with the remaining 20% paid, minus fees, once the invoice is fulfilled by your customer. As such, with invoice finance, wholesalers can release working capital that would otherwise be tied up in late payments and instead focus on growing their business.


Asset finance is a way to purchase items such as delivery trucks, lorries and machinery for your wholesale business without having to pay the total cost upfront.

With asset finance, wholesalers can spread the cost of the asset over a fixed repayment term, which can help keep cash flow stable and free up valuable working capital.

This makes asset finance popular with businesses that realise purchasing an expensive piece of equipment, such as machinery or a new fleet, will speed up production or increase sales. With asset finance, businesses can reap the benefits of the new equipment without one large payment impacting their cash flow.

Businesses can also use asset finance to free up working capital against existing assets that they already own, making it a great way to release cash flow to support growth.

With plenty of alternative finance solutions available to wholesalers, it’s worth carefully considering which option is right for you. A good finance provider will always look for ways to tailor funding specifically to your needs, so be sure to select a funding partner who has flexibility built into their offering.

Peter Tuvey is the CEO of Fleximize, a multi-award-winning digital business lender dedicated to providing UK SMEs with flexible finance, done properly.

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