How Wholesale and Distribution Businesses Use a Line of Credit to Keep Cash Flow Moving

Last updated: November 2025

Business Finance Insights by Casey Asset Finance — helping Australian importers, wholesalers, and distributors access smarter funding.

Discover how flexible credit can help distributors, wholesalers, and FMCG businesses stay ahead — even when cash flow slows down.

1. Why Cash Flow Challenges Hit Distributors the Hardest

If you run a wholesale, FMCG, or distribution business, you know cash flow doesn’t move in neat, predictable cycles.

Big supplier orders, seasonal peaks, and customers taking 30, 60, or even 90 days to pay can tie up a huge portion of your working capital.

Meanwhile, wages, logistics, and supplier payments keep coming due.

The result? A business that’s profitable on paper — but constantly short on cash.

That’s where a business line of credit can transform how you manage your day-to-day operations.

2. What a Business Line of Credit Actually Does

A line of credit is an approved funding limit that your business can draw from as needed — then repay and reuse, just like a revolving facility.

You only pay interest on what you use, and you can access the funds again once it’s repaid.

Example:

If your business has a $150,000 limit and you draw $40,000 to purchase stock, you’ll only pay interest on that $40,000. Once it’s repaid, your limit resets, ready for the next opportunity.

That flexibility gives you control over short-term funding without the stress of reapplying for new loans or waiting on lengthy approvals.

3. Why a Line of Credit Suits Wholesalers and Distributors

For wholesale and distribution businesses, a line of credit isn’t just convenient — it’s strategic.

It smooths out cash flow gaps and creates breathing space when timing doesn’t align between supplier payments and customer receipts.

Here’s how it helps:

✅ Smooth cash flow cycles: Bridge the gap between paying suppliers and receiving customer payments.

✅ Restock faster: Reorder high-demand items without waiting for invoices to clear.

✅ Seize supplier discounts: Pay early and secure bulk or priority pricing.

✅ Cover multiple orders: Manage overlapping jobs or contracts without the stop-start of short-term loans.

It’s flexible funding that moves with your business — not against it.

4. How It Fits Within Commercial Distribution Finance

A line of credit is one of several tools available to keep your supply chain financed and your business agile.

It often works best when paired with other products under the Commercial Distribution Finance umbrella, such as:

• Debtor Cash Lines:
  A revolving line of credit secured by your outstanding invoices. Undisclosed to customers and without individual invoice drawdowns — designed for ongoing, low-effort cash flow.

• Trade Finance:
  Perfect for importers and manufacturers paying suppliers upfront for goods that take time to sell.

• Inventory Finance:
  Helps you buy seasonal or high-turnover stock now and pay over time as sales flow in.

These options can work independently or in combination, depending on your trading cycle and cash flow needs.

5. When a Line of Credit Is the Right Choice

You might consider a line of credit if your business:

• Has regular turnover but unpredictable cash flow.

• Extends payment terms to retail or business clients.

• Experiences seasonal fluctuations in sales or stock demand.

• Wants quick, repeatable access to working capital without reapplying for each drawdown.

It’s ideal for distributors, importers, and wholesalers who need agility and certainty without long-term debt.

6. How to Access a Line of Credit for Your Business

At Casey Asset Finance, we work with over 40 trusted business lenders — including those specialising in Commercial Distribution Finance — to help businesses like yours secure flexible, fast-working capital.

We compare products from banks, non-bank lenders, and alternative funders to match you with options that suit your trading pattern and risk profile.

✅ 100% free pre-assessment

✅ No credit score impact

✅ Same-day feedback available

7. Next Steps

If you’re looking for a smarter way to manage cash flow and keep stock moving:

👉 Learn more about Commercial Distribution Finance

or

✅ Start your free pre-assessment (no score impact) — and find out which funding structure best fits your business.

👉 Check My Eligibility (30 sec – No Score Impact)

About the Author

Michael Pajar is the Director of Casey Asset Finance, a Melbourne-based business finance brokerage helping Australian SMEs secure funding through fast, transparent, and responsible lending solutions.