Authored by Phil Cohen
If you are a business owner who has been putting off growing your business due to a gap in working capital, purchase order financing can be the solution. With purchase order financing, a factoring company will issue a cash advance for goods that have been ordered, but not yet delivered. Purchase order financing is a popular funding choice for businesses in the wholesale or distribution industries.
Purchase Order Financing Process
With purchase order financing, your business presents written purchase orders for specific items ordered by customers. Examples of qualified purchase orders include letters of guarantee, deposits, finished goods, shipping, overhead and project-specific labor. Following approval, the factoring company will disburse funding up to 100% of the transactions. Purchase order financing is not a loan, but instead is a cash advance of the money you would eventually receive from the invoice.
Why Choose Purchase Order Financing
Purchase order financing gives you the money your company has earned when you need it, not when the purchase order will be paid. Qualifying is simple and easy. Since the factoring company only considers the credit of the business paying the purchase order, your company can use factoring even with bad credit. Grow your business now using the funds you receive from purchase order financing. Have peace of mind knowing you have access to a steady cash flow for handling new and incoming orders.
Factor Finders Makes Financing Matches
If you are ready to start purchase order financing, but you are not sure where to find a factoring company, let Factor Finders help. As a factoring broker, it is our job to match businesses with the right factoring company. Reach out to Factor Finders today to get started.