Improve Cash Flow with Purchase Order Financing
A significant part of business management is allocating funds so that they are used in the most productive way possible. Often, a large portion of a company’s capital can be tied up in buying inventory, raw supplies, or equipment. This does not always need to be the case, though. Purchase order financing allows you to alleviate some of that financial burden.
How Does It Work?
Instead of using cash to make purchases of goods or parts to fulfill an order, PO financing uses a third party to fund the acquisition. In general, a company is required to submit certain information to the financier before the transaction can be approved, such as the requisition from the customer and the invoice from the supplier. Additional information may be required, depending on the lender.
Who Can Benefit from This?
Many types of businesses can utilize this type of lending, including the following:
- Wholesale sellers
- Retail sellers
- Product distributors
- Producers
If your enterprise is service based, however, you may need to explore another form of funding.
Contact Us Today
MWFSG (Miller-White Financial Services Group) is available to discuss how you can make the most of your capital. Whether you have an established business and want to make the best use of your money or you are a new one with limited cash flow, purchase order financing can be a great way to help your endeavor thrive.