At MY Company Funding, we offer purchase order
financing for businesses looking for $25K in funding and up. Businesses that need to cover a short fall, fund an expansion or invest in repairs and upgrades can get the working capital that they need to stabilize and grow their business.
How Purchase Order Financing Works
If you have a supply chain to manage and you sell products, it’s likely that you are able to acquire purchase order financing. When you buy goods to resell, you often need to make an initial cash investment before the goods are sold. PO financing can simplify this process. Through PO financing you are able to finance goods before they are collected on. Once the products are sold and collected on, the financing can then be repaid. PO financing can be especially useful because (as a type of asset-based financing) larger sums of money can be loaned compared to personal or
business loans.
When Purchase Order Financing Is Useful
Purchase order financing is necessary for getting businesses with low liquidity into the market. Businesses are able to sell products before they’ve had to pay for them, allowing them to purchase as many goods as they could sell. This form of financing is extremely cost-effective and fast, with each application usually taking one or two weeks. Businesses that are seeking to expand into new markets or that are seeking to ramp up their sales dramatically can benefit from PO financing as a buffer, as they will not need to build up their liquidity before making a big purchase. PO financing also ensures that the business has liquidity (cash on hand) in the event that other situations arise.
The Advantages of Purchase Order Financing
A purchase order is considered to be an individual commitment to make a purchase. Not all companies take purchase orders, but they are necessary for this type of loan. Because it is a commitment to purchase, buyers can be considered responsible. And because of this, the lending company is taking on very little by way of risk. Lower risk means better terms. A purchase order finance isn’t going to require a credit check and will offer low rates to even new businesses. Overall, purchase order financing is a simpler solution for many companies.
Business owners who are interested in acquiring additional funding can do so by contacting us at
MY Company Funding. You can get a quote today on the available financing options for your business, regardless of your company’s size, credit score and financial history. If your business accepts purchase orders, purchase order financing is available.
