Purchase Order Financing
Fund Rapid Growth With Purchase Order Financing
Any business can struggle fulfilling large or unexpected orders if they don’t have the cash on hand to cover the costs associated with those orders. Purchase order financing helps your business fill product orders by covering payments to suppliers.
There are many reasons why a business might struggle with large purchase orders; a company may be experiencing rapid sales growth, their sales could be seasonal or they might be undergoing a recapitalization. Some business owners choose to turn away business but this can hurt your reputation and diminish customer trust. When you need funding to help you fulfill your customers’ orders, purchase order financing is a great option.
Purchase Order Financing Explained
A purchase order financing company will make direct payments to your suppliers so that you can receive the raw materials, sub-assemblies or inventory you need to make finished goods for your customers.
Purchase order financing is an ideal way for you to take on larger projects and orders. A related, but different financing option is accounts receivable financing, which is when you sell your invoices for a quick infusion of cash that can be used for any business purpose.
Better Than a Traditional Loan
Purchase order financing is more flexible than traditional lending. Banks generally won’t lend against purchase orders without some other form of collateral, and in most cases the approval process takes weeks or months. A purchase order financing company needs only the purchase order itself as collateral, and can quickly setup payments to your suppliers.
Benefits of Financing With Purchase Orders
- Provides working capital fast
- Grows your market share by fulfilling larger projects
- No long term debt or dilution of equity
- Reusable—finance new orders at will
- Builds credit with suppliers
Potential Uses for Purchase Order Financing
- Inventory and pre-sold goods
- Hardware and software for resale
- Sourcing raw materials
- Delivery and installation costs prior to invoicing
You need a strategic, cost effective solution to your financing needs and a finance advisor you can trust. And one who never takes upfront fees. Let us put our decades of banking and structuring experience to work for you – contact Speritas Capital Partners about purchase order financing today.