Who Can Benefit from Purchase Order Financing?

Purchase order financing is a process that can be used by many companies successfully. With purchase order financing, you will be able to get purchase orders filled that you cannot necessarily afford yourself. An outside company will come in and give you the money that you need to pay your suppliers.

New Small Businesses

This type of financing is very popular with small businesses. Many times, small businesses do not have the capital that they need in order to purchase supplies from distributors. They might already have the sales written, but without the funds to pay the distributors, they cannot gain access to the products that they need to sell. If this is the case, purchase order financing can be very beneficial. This is ideal for companies that are getting started and do not have a credit history behind them. Banks will often not be willing to work with them, but purchase order financing companies usually will.

Bouncing Back

Another type of company that can benefit from purchase order financing is the one that is trying to bounce back from a reorganization. If the company went through debt reorganization, they will most likely not be able to get a traditional loan. Purchase order financing can fulfill their need. 

blog comments powered by Disqus