In today’s down economy, traditional lenders are unwilling or unable to invest in new business start-ups, no matter how promising the concept. Purchase order funding can be the life line that provides capital even in a down economy, because funds are approved on the basis of solid orders you have received. If you can prove you’ll get paid, we’ll send a letter of credit to your supplier, and return all but a small percentage of the eventual proceeds to you. A classic win-win situation.
How it Works
First, the bad news. You have a promising concept for opening a new business, but cannot find a resource to provide the capital you need; and today’s damaged and stagnant economy does not inspire hope.
Traditional commercial lenders like banks, private investors, credit card issuers, equity firms, even well-to-do friends, neighbors and family members, are currently unwilling or unable to help. No one has the necessary combination of investment inclination and disposable income or retirement assets to back you. Protecting their own portfolio is paramount today, no matter how good your business idea may be.
The good news? There is a tool that provides capital to small businesses regardless of overall economic conditions: purchase order financing. Funds are approved on the basis of solid orders you have received but do not have the money to fulfill. (Hard goods only, not services.) If you can prove you’ll get paid, we will send a letter of credit to your supplier – when you complete the order, the supplier pays us, and we send all but a small percentage of the proceeds to you. Getting 95% of a sale’s profit is unarguably better than getting zero.
Starting up a new business in a loan-challenged economy may seem like an unrealistic goal. It won’t be easy, but PO funding may at least make it possible.