When you’re running a small business, it can be difficult to keep up with larger customer orders. After all, it takes money to make money – and if your cash flow isn’t quite meeting the needs of those big orders, purchase order financing could offer a solution. Purchase order financing is an alternative funding option that helps businesses cover the cost of large customer orders so they can focus their energy on helping their customers while growing their business.
How Purchase Order Financing Works
Purchase order financing allows businesses to pay for the cost of fulfilling their customer orders and grow their business, without having to dip into their resources. This type of funding is obtained by working with a lender who will pay your supplier directly for the goods or services you need to fulfill an order from a large customer. The lender then collects payment from your customer, and in turn, pays you a predetermined fee for the services rendered. This way, you don’t have to wait until after the order is completed to receive payment – and you can devote more cash flow towards keeping up with demand.
Additional Benefits
In addition to making, it easier to cover large orders without compromising cash flow, purchase order financing also helps businesses secure favorable terms from suppliers. Since lenders are willing to front the money for large orders, suppliers may be more inclined to offer discounts or better payment terms, allowing you to get the most out of your purchase.
Financing Without Debt
Finally, one of the major benefits of purchase order financing is that it doesn’t require businesses to take on any additional debt. The lender pays the supplier directly and collects payment from the customer, so there’s no need to worry about adding extra debt to your balance sheet – making it a great option for those companies that want to stay lean.
Purchase order financing is an increasingly popular choice among small businesses looking for ways to manage large customer orders without sacrificing cash flow. With the help of a trusted lender, you can have access to the funds you need for big orders and take advantage of better terms from suppliers – all without taking on any additional debt. So, if your business is struggling to keep up with demand, purchase order financing could be the answer. Contact Synergy Commercial Funding today to learn more.
Are you looking for financing options for your business? If so, Synergy Commercial Funding is ready to help. We offer a wide range of commercial finance services to help businesses of all sizes achieve their objectives, whether it’s purchasing new equipment or purchasing a new commercial property.
Interested in creating a second line of income just by talking with your existing network? Want to help the economy grow by helping businesses around you grow? Think about becoming a Synergy Commercial Funding Partner. Visit our "Referral & Broker Program" to learn more.
