Getting business funding for small wholesale businesses is not easy. Starting a small wholesale business means you need to get a huge initial funding through a business line of credit. Also, when you borrow, you need to pay interest as well as provide some collateral as security. However, there are other options of obtaining investments for your business. You can get a small unsecured line of credit from a financial institution. A business line of credit allows you to borrow small sums of money from a financial institution without any collateral security. For a small business, that needs money from time to time; this is an excellent way to get business funds.

While the small business line of credit is not much for investing in long-term business plans, it does do the job of sourcing during a cash crunch. This means that you will not have to dip into your savings nor do you have to depend on your friends when your business is slow or needs new cash.

Unlike other methods of financing, you do not give up the ownership of your company to anybody. Your small business line of credit negates the need for you to borrow money at the cost of your company.

You can establish a good working relationship with the lender if you repay the line of credit as per the payment schedule. As your business grows bigger, you may be allowed to borrow larger amounts of money for your operational expenses. Once you are an established businessman, based on the track record of your small business line of credit, you can apply for a big loan. 

The following is a few sources of credit for small businesses.

1. Community Banks
Community banks operate almost everywhere in most countries. They issue lines of credit to borrowers who can convince them of their ability to repay the loans.

2. Finance Companies

Finance companies provide short-term loans to small business starters. However, their standards tend to be low, and they often carry high interest rates. If you are a small business owner and tend to borrow a loan from a finance company, you should be careful before signing a contract with such a group.

3. Borrowing against Receivables
Small business owners can also obtain finances through using accounts receivable. 
When you are looking to apply for a line of credit, there are various factors that lenders consider before giving their approval. 
One of the first things that they would consider while reviewing your request for a small business line of credit is your capacity to repay, as well as your credit history. They will check your credit card payments and the late payment records. While checking your credit history, they will also look into your existing loans and interest amounts. 

However, if your credit score is average, then the only thing that can work in your favor is your idea or concept. The lender will carefully understand and review the profitability, scope, and risk involved in your product or service. If it does have potential, then you will be granted a business line of credit.

You might also consider getting credit from your wholesale suppliers, whether you are purchasing directly from manufacturers or brands, this way you will not need to seek outside financing to purchase wholesale merchandise for your warehouse or website.