Purchase Order Funding

purchase orderIf you own or operate a small to medium sized company, you know that a shortage of capital is one of the main issues facing such companies, especially ones attempting to grow. When an order for a product or a contract for a service comes in, often a company does not have enough liquid cash to fulfill the order. Sometimes a company gets the chance  to accept an exceptionally large order that could help grow the business, but they may be afraid to: They don’t know how they will get the money to bankroll it. Their choice becomes to obtain some form of equity financing or to lose the business opportunity.

Loans can get very expensive, and if the company is new or does not have great credit, loans can be very difficult to obtain. Purchase Order Funding makes it unnecessary to take out a loan.

Purchase Order Funding is an alternative form of financing and source of capital. It can provide needed capital to companies that have valid orders and great business potential but lack capital to grow their business. It allows them to leverage their purchase orders for cash or credit advances to their suppliers so they can accept new business, even when they don’t have enough operating capital to fund the job.

If you need more funding than banks will provide, PO Funding is a viable option because it lets you make sales that exceed your current financial capabilities. To grow your business, you need to convey an image of financial stability to business partners, and PO Funding is a professional way to do that.

PO Funding is transactional financing based on the merit of the transaction ─ not on your company’s balance sheet. It works best when the client ordering your product or service has a good credit history and is therefore a good credit risk. You can get large amounts of cash without giving up any equity. The PO pays for the cost of goods, leaving you vital funds for paying employees and other immediate expenses.

PO Funding is not a loan
It is essentially an advancement of funds. The PO finance company agrees to pay your supplier (with cash or credit) for the materials you need to complete a specific job. The finance company gets their money back when your client pays for the PO.

PO Funding includes collections
The PO finance company will not only advance you the money, they will also collect payment from your client. This eases your company’s burden. After they receive money from your client, the finance company will send it you, minus any fees.

PO funding doesn’t require spotless credit
One of the best things about PO funding is that it doesn’t require your company to have spotless credit. This type of funding is an excellent option for companies with average credit.

For additional information, contact:

Ray King <> The ProCoach
Phone: 832-615-9124 * Fax: 832-615-9570
Email: Ray@TheProCoach.com