One of the greatest challenges for a small business is being able to fulfill large purchase orders. Small companies often lack the funds to pay suppliers and other expenses associated with large orders. Most companies try to use financing – when it is available – to solve this problem. One common option is purchase order […]
PO Finance
Guaranteed Sales And Purchase Order Financing
It’s not uncommon for us to speak to a prospect who is very excited about a large purchase order they just received from a very reputable company. Furthermore, as we review the details of the order, we believe that the order will be a good candidate for purchase order financing because it meets these three […]
How Do PO Finance Companies Pay Suppliers?
Purchase order financing helps small companies with the supplier costs associated with a large order. It enables small business owners to fulfill large orders and book the revenue. This article discusses how purchase order finance companies pay your supplier expenses. We cover: Why is your supplier asking for a prepayment? Reliable supplier payment methods High-risk […]
Supplier Financing vs. Purchase Order Financing
Supply chain financing is a set of tools that companies use to improve their cash flow and their ability to run the business. It offers tools such as reverse factoring, supplier financing, and purchase order financing. Factoring and reverse factoring are post-delivery financing tools. As such, they can help only after you have delivered your […]
Using PO Financing with Asset Based Lending
Generally, companies don’t use purchase order financing as a stand-alone product. Instead, they combine it with another financing solution, such as factoring. The reason both products are used together is that combining them often reduces total transaction costs. These savings benefit the client and drop directly to the bottom line. The purchase order financing line is used to pay […]
Small Business Purchase Order Financing
One of the greatest challenges for small product wholesalers is getting an order too large for them to fulfill. Large orders are good only if you have the financial resources to fulfill them. If you can’t fulfill them, you risk losing the order – and the customer – to a competitor. Being unable to handle […]
Government Purchase Order Financing
Selling products to the US government can be lucrative, especially for small business owners who qualify for the 8(a) program. This program offers several opportunities to companies that meet its criteria – usually small businesses, minority-owned businesses, and women-owned businesses. Product contracts often have large values that exceed the financial capabilities of small government vendors. […]
How Loans Against Purchase Orders Work
Getting a large purchase order can be a great opportunity if the company has the funds to fulfill it. Unfortunately, small companies often miss these opportunities because they lack the funds to execute the transaction. In this article, we discuss a way to finance purchase orders. We cover the following: How are purchase orders financed? […]
How Much Does Purchase Order Financing Cost?
Summary: Purchase order financing is commonly used by small companies that have won a large purchase order but don’t have the financial means to fulfill it. This article discusses the average PO financing rates and how transactions are structured. This information will help you determine if PO financing is the right solution for you. The […]
How To Finance a Timber/Lumber Export Company
There is a large market opportunity for US and Canadian companies that export timber, usually as logs, to Europe and Asia. Although timber is a commodity, some types of wood – especially high-demand specialty hardwoods – can command high profit margins. The combination of high demand and decent profit margins makes these transactions very appealing. However, […]