Food distributors operate at the wholesale layer of the food supply chain — buying from producers and selling to restaurants, hotels, institutions, and retail operations. Capital needs are dominated by inventory carrying costs, vehicle fleets for delivery, warehouse refrigeration and storage, and accounts receivable financing (since restaurant customers typically pay net-30 to net-60).
Prime Restaurant Capital funds food distributors across categories — produce distributors, meat and seafood wholesalers, specialty food distributors (ethnic foods, organic/natural), beverage distributors, and broadline foodservice distributors serving multiple categories. Funding ranges from $50K to $1M.
Food Distributor Capital Needs
Delivery Vehicle Fleet
Distribution requires vehicles. Refrigerated trucks for cold-chain products ($60K-$120K each), dry goods trucks ($45K-$80K), specialty vehicles for high-value distribution. Vehicle financing structures these costs over 60-72 months. Multi-vehicle fleet financing is common.
Warehouse and Refrigeration
Distribution warehouses require massive refrigeration — walk-in coolers and freezers measured in thousands of square feet, blast chillers for receiving, climate-controlled dry storage, loading dock equipment. Equipment financing for warehouse build-outs structures over 60+ months.
Inventory Working Capital
Distributors carry massive inventories — often $100K-$500K+ in active inventory at any moment. Working capital funds inventory expansion, new product line introductions, and seasonal stocking patterns.
Accounts Receivable Financing
Restaurant customers typically pay distributors on net-30 terms. With $200K+ in monthly receivables outstanding at any time, distributors have significant working capital tied up in unpaid invoices. Invoice factoring and receivables-based financing solve this cash flow timing.
Food Distributor Funding Qualifications
- Operating food distribution business in the US — minimum 12 months
- Monthly revenue $30K+ (most distributors we fund do $50K-$500K monthly)
- Active customer base with recurring B2B sales
- Credit score 580+ preferred
