(PRLEAP.COM) Miami, Florida – Resellers and distributors can now accept larger orders with confidence, knowing that purchase order (PO) financing will help them pay their suppliers, deliver the goods, and make the big sale.
Getting very large orders can be a huge challenge for small companies. Sure, a large order can be a blessing if they have the resources to deliver on it. But it can be a nightmare if they don’t. Purchase order financing – a tool that helps small and mid-sized business owners – covers all supplier payments, enabling these businesses to sell and deliver products with confidence. Furthermore, the transaction is settled once the customer pays, making it a very flexible form of financing.
“Purchase order financing is really a great tool for resellers and distributors that are selling to large commercial or government customers,” said Marco Terry, president of Commercial Capital LLC. “It gives them the necessary financing to take their business to the next level,” he added.
A PO financing transaction is very simple. Once a client has a confirmed purchase order, the financing company provides letters of credit (or similar instruments) guaranteeing payment to the suppliers. With these guarantees in hand, the client can obtain the necessary products to deliver the services. The factoring company settles the transaction once the customer actually pays the invoice (using invoice factoring). This structure allows clients to close transactions using little – if any – money of their own, making PO financing an ideal product for start-ups or companies that are growing very quickly.
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