Times continue to be tough and businesses are still in need of financing for a variety of reasons. That’s where purchase order lending comes in, whether you are a new or existing business, take the time to give us a call. Unlike most PO lending companies our finance team takes the time to understand what your business does and then formulate a strategy to get you the working capital you need.
Do you need PO lending
Your business needs a large amount of working capital fast. You received a huge order from a customer, and don’t have the money to fulfill it. You need to hire workers, buy raw materials and meet production expenses. And the bank won’t approve a loan. Do you have to turn that huge order down?
Bad idea. Letting a large order go can hurt your reputation, chase away a good customer, and fail to take advantage of an opportunity that could show the marketplace your business is in growth mode. Accept the order - and get access to the capital you need through purchase order financing.
Purchase Order Lending Explained
Get a purchase order from your customer. Arrange your order with your suppliers. If the order passes our due diligence we take it from there, issuing a letter of credit to your supplier, receiving payment from your client, and passing on all but a fraction of the profit to you. And since you never actually handle the money, it never shows up as debt on your balance sheet.
Purchase order lending works because we are basing its risk on the credibility and financial soundness of the end customer who places the purchase order - not on the finances of your business.
Here are some common business situations for which PO financing is often well designed to support:
- An established business receives a large number of orders during its peak season
- A new business start-up has a commercial line of credit that simply isn’t high enough yet
- A small business has an opportunity to expand and become a mid-sized business, but lacks the capital to do so
You owe it to yourself to consider PO lending as an option that may help you grow your business. And you may never have to consider turning down a big order again.