Distributors face multiple challenges day-to-day, but there’s one issue that can really bring a business to a grinding halt: delayed payments.
While you're supplying goods, fulfilling orders, and keeping the supply chain moving, your cash is often tied up in unpaid invoices. That’s where distributor factoring from New Century Financial can make a real difference; by giving you immediate access to the money you’ve already earned.
Whether you’re distributing to retailers, contractors, wholesalers, or the healthcare and industrial sectors, we provide factoring for distribution companies that need fast, flexible working capital.
What Is Distributor Factoring?
Distributor factoring is a cash flow solution that turns your unpaid invoices into fast, working capital. Instead of waiting 30, 60, or even 90 days for customers to pay, you submit your receivables to a factoring company like New Century Financial. We advance up to 90% of the invoice value—often within 24 hours—then when your customer pays the invoice, you receive the remaining balance, minus a small fee.
You get immediate access to the cash you’ve already earned, without taking on debt or dealing with long approval processes.
Why Factoring for Distribution Companies Makes Sense
Unlike traditional loans, distributor factoring is not based on your credit score or years in business. Instead, it’s based on the strength of your receivables and the reliability of your customers. That means newer companies, growing businesses, and those with challenged credit can still qualify and thrive.
New Century Financial’s distributor factoring helps you:
- Improve cash flow in 24 hours
- Choose which invoices to factor
- Get funding with no long-term contracts
- Expand operations without bank loans
- Take on larger customers with confidence
- Pay suppliers, employees, and overhead on time
At the end of the day, we’re in the business of keeping your operation moving without having to compromise on growth, payroll, or supply chain reliability. That’s what we deliver.
Who Uses Distributor Factoring?
Distributor factoring is designed for businesses that move product quickly but often have to wait weeks—or even months—for payment. That delay can leave you strapped for working capital right when you need it most.
Our factoring solutions are built to support distributors across a wide range of industries who deal with this kind of challenge every day.
We work with:
- Consumer goods distributors who need steady cash flow to restock fast-moving items
- Electronics and computer hardware suppliers facing high upfront costs and thin margins
- Energy and natural gas distributors balancing large-volume orders with complex billing cycles
- Building materials and construction supply firms that can't afford to sit on receivables during peak season
- Medical product and healthcare equipment suppliers with clients like hospitals and clinics that operate on long net terms
- Automotive parts and accessories dealers that depend on predictable capital to fulfill dealer and repair shop orders
- Food and beverage distributors working with grocery chains, restaurants, and retailers
- E-commerce and fulfillment businesses scaling fast but waiting on payments from large retailers or B2B partners
If your business invoices customers on net 30, 60, or 90-day terms, and you're tired of waiting to get paid for work you’ve already done, distributor factoring can give you access to that capital now.
How Distributor Factoring Works
Whether you're dealing with big-box retailers, healthcare networks, or regional suppliers, we know how long payment terms can strain your cash flow. Distributor factoring helps you get paid faster for the work you’ve already done, and getting started is straightforward.
- Submit your invoice: Send us the invoices you want to factor. Whether it's a single large account or a batch of smaller orders, you choose what to submit.
- Get cash in hand fast: We advance up to 90% of the invoice value, often within 24 hours, giving you the working capital to purchase inventory, cover operating costs, or fulfill your next round of orders.
- We handle payment collection: Your customer’s payment is redirected to New Century Financial. When the invoice is paid, we send you the remaining balance, minus a small fee.
There’s no debt involved, no long-term commitment, and no waiting weeks to get paid. You maintain control, stay flexible, and get consistent access to the revenue you’ve already earned without the pressure of chasing down receivables.
Distributor Factoring vs. Bank Loans
Here’s a quick breakdown comparing factoring for distribution companies and traditional loans.
| Feature | Distributor Factoring | Bank Loan |
| Approval Time | < 24 hours | Weeks to months |
| Based On | Customer creditworthiness | Your financials & credit |
| Collateral Needed | UCC-1 on business assets | Often requires hard collateral |
| Debt Added | None | Yes |
| Flexibility | Choose invoices to factor | Fixed loan amount |
| Impact on Credit | None | Appears on credit report |
Why Distributors Choose New Century Financial
We’ve worked with distributors of all sizes across nearly every industry. Our clients choose us because we offer:
- Fast, straightforward approvals, even if your credit isn’t perfect
- Flexible terms: No minimum volume requirements or long-term contracts
- Industry expertise: We understand the challenges unique to distribution and fulfillment
- Responsive service: Real people you can reach when you need support
Get Started in Minutes
Slow customer payments don’t have to stall your operations. Distributor factoring with New Century Financial gives you fast, flexible access to working capital without debt, red tape, or long-term contracts.
Here’s how to get started:
- Apply online in just 2 minutes — no application or setup fees
- Get approved fast: Most businesses are approved within 24 hours.
- Start submitting invoices: Access your cash quickly and keep orders flowing.
Our team is here to help you stay ahead. Have questions? Call us at 800-805-8380.
Frequently Asked Questions About Distributor Factoring
How much does distributor factoring cost?
We charge a small, transparent fee based on your invoice value. Many clients find it
far more affordable than missing out on orders or waiting 90 days for payment. There are no hidden fees, no
setup costs, no application costs, and no long-term commitments.
How much funding can I get through distributor factoring?
We offer factoring facilities starting at $25,000 and going up to over $10
million, depending on your needs. The exact amount is based on the value of
your unpaid invoices and the strength of your customer base.
How much will you advance on my invoices?
We can advance up to 90% of your
invoice value. The exact percentage depends on factors like your industry, the creditworthiness of your
customers, and the documentation you provide.
Do I have to factor all my invoices?
No. You choose which invoices to factor and when.
Will my customer know I’m using factoring?
Yes, but it’s a common practice in distribution. We communicate professionally and
discreetly, and you retain control of the customer relationship.
Can I qualify with bad credit or limited business history?
Yes. Approval is based primarily on your customers' ability to pay, not your credit
score or time in business. The only collateral on your end will be a standard UCC-1 lien on business
assets.
Is distributor factoring a loan?
No. Factoring is not a loan; it’s a sale of an asset (your invoice). That means no
added debt and no monthly repayments.
What documents do I need to get started?
To begin the approval process, we typically ask for:
- A current accounts receivable aging
report - Your most recent business tax
return - A sample invoice with supporting
documentation (like purchase orders or delivery confirmations)
This helps us assess your eligibility quickly and provide a proposal,
often within 24 hours.
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