Purchase Order Financing: Getting Down To Business
Small business owners are all too familiar with how difficult it can be to build their growth capital. Thankfully, the experts of Vantage are here to show you how easy it can be to grow your business while taking care of employees, vendors and the other costs of operating a business. Purchase order financing could be just the option you need to take on larger orders and create a larger business.
How it Works
Rather than passing up on larger customer orders because you lack the financial resources to do so, you can accept them with confidence. The way purchase order funding works is:
- A business financing company provides you with the funds needed to fulfill larger orders.
- You complete the order and create the invoice.
- The financing company takes care of the final bill, and possibly even the delivery of the order.
- Your customer pays as he or she regularly does before a percentage of the purchase order financing is deducted along with a fee
- Whatever remains funnels back into your business as revenue.
Understanding Purchase Order Finance
Something very important to remember is that this type of financing is not a loan, which means you don’t have to list it in your books as a debt. What’s more is you can procure funding with a quick turnaround time, allowing you and your employees to get to work on fulfilling orders faster without worrying as much about a deal potentially falling through. Even better is that this brand of financing isn’t commonly offered by traditional banking institutions. One of the reasons for this is because standard banks don’t see the merit in purchase order loans the way Vantage does.
Take Your Business to the Top Without Scraping the Bottom of the Barrell
It’s true that it takes time to build your business, but likely not as much time as you might think. Taking on a single large order could be enough to put your small business on the fast track to successful growth. Each large order you take on provides you with both a growing opportunity and a learning opportunity, which you can use to better fulfill your next order. After a while you might have enough revenue and business built up that you find it easier to go head to head with your competitors and large businesses.
See just what your small business is made of with the help of purchase order finance. Get in touch with a Vantage representative today to learn more or to get started on your application.
