Purchase Order Financing: How To Grow Your Business and Boost Working Capital

Although running your own business is definitely rewarding on many levels, successfully managing cash flow can be a real headache, especially if your company is small and still growing.

For instance, it can be difficult to confidently take on and fund new projects when you’re still waiting on payment for past invoices. Purchase order financing can help you make up the difference so you can keep your business growing, thriving, and producing even when money’s tight.

How Does It All Work?

In short, the financing company you choose to partner with makes it possible for you to take on new work by covering the necessary production costs foryou right out of the gate. They also handle the process of collecting payment from your client once the job is completed. Once that payment is received, they recoup the borrowed funds (plus a previously agreed upon fee) and pass the difference along to you. All you have to worry about is doing the same exceptional work you always do.

What Are the Benefits?

In addition to keeping your working capital accessible and your business running smoothly, purchase order financing brings quite a few additional advantages to the table. They include but aren’t necessarily limited to the following.

  • When your business is new and still building credit, it can be difficult to impossible to get approved for a traditional business loan. This type of alternative financing is not only much easier to obtain, but it’s usually a lot cheaper as well.
  • In the event your company has the chance to take on an unusually big job, you’ll be able to accept it with confidence thanks to a lack of worry about where the production costs will come from. 
  • You’ll be able to pursue, initiate, and nurture relationships with even top notch A-list clients long before you’d otherwise be able to.
  • Since the financing company you partner with will handle the task of collecting payment for you, you’ll have one less thing to worry about in the long run.

In other words, purchase order financing just may be the solution your growing business has been looking for when it comes to ongoing expansion. You’ll finally be able to provide next-level services to high quality clients that love what you do. You’ll be able to keep your reputation, your production, and your business credit on the rise as well. Get started today and make worries over consistent cash flow a thing of the past.

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