Usually the defining moment for a small to mid size distributor or wholesaler is when they get a huge order from their best customer. It is not unusual for a large customer to place a few small test orders, and if everything works well, to follow up with a stream of massive orders. This is the kind of situation that can truly grow a company and help it reach the next level.

However, this can also present a very significant challenge. Distributors and wholesalers usually buy the products from suppliers in order to re-sell them. And, suppliers always require to be paid either upfront or with a letter of credit. Large distribution companies can usually get terms or a letter of credit without a problem, allowing them to buy the product from the supplier easily. However, this can present a very big challenge for small and mid sized businesses that cannot obtain financing. At its worst, you may not be able to fulfill the order, forcing the client to go to your competitor. The fact is that a big order can either be a blessing, if you have the financing, or a true nightmare if you don