| What Is Purchase Order Financing
In purchase order financing, lenders provide the up-front cash you need to acquire inventory, so you can deliver the finished products ordered by your customers. This form of funding is a great solution for businesses that need to pay suppliers immediately for goods and materials, but whose customers pay their invoices on net 30 or 60 day credit terms. Purchase order financing is geared towards businesses that are experiencing rapid growth with large demands for working capital, but need greater borrowing flexibility than bank loans or lines of credit can possibly offer.
How Does It Work
Benefits
Purchase order financing enables you to finance up to 100% of supplier costs, allowing you to deliver more and bigger orders. Financing limits are also directly tied to your sales and not your creditworthiness, which means more money becomes available as your business grows.
As opposed to traditional bank lending, purchase order financing is easy to qualify for (since funding is based on your customers’ credit worthiness), and can be set up quickly (in as little as 7 days). The application process is also simpler and easier than applying for a conventional business loan, as there are no financial statement or tax return requirements.
What We Do For You
At Mathu & Co. Consulting we broker purchase order financing through industry-leading factoring companies. We do the following for you:
- Determine the suitability of your purchase orders for this type of funding, including reviewing the products you offer and vendors/clients you work with.
- Find the most suitable factoring companies for your business, who offer the most attractive funding terms.
- Help establish the funding relationship and ensure its on-going success.
Our services will lift the burdens of navigating through all the options available, allowing you to focus your energy on what you do best, generating even more customer orders!
Contact Us today for a FREE no-obligation consultation. |