Use Purchase Order Financing To Keep Your Cash Flow Strong

As a growing business, you’re sure to face challenges with cash flow along your journey to success. Fortunately, lenders have short-term financial support options such as purchase order financing to keep your company moving strongly through tough times. Whether you regularly deal with production, imports or even exports, this type of financing can help you keep your daily operations up to speed so you can ride out those growing pains.

What Is PO Financing?

PO financing is an arrangement in which a lender provides a business with financing based on the value of incoming verified purchase orders from customers. Typically, customers pay you 60 to 90 days after a purchase is complete, leaving you with little cash to pay your suppliers on the next order. PO financing is simply a means of filling in that gap so you don’t have to turn down clients due to insufficient purchasing power.

What Are the Benefits?

While this arrangement is by no means meant for long-term financial support, it does have several distinct benefits for the growing business.

  • Financial support without incurring debt
  • Building confident customer relationships
  • Fast, flexible funding
  • Filling larger customer orders for larger profits

Each of these advantages serve to make your business stronger and more profitable.

Whether you’re a fast-growing company and just need a bit of extra support or you’re falling on hard times financially, PO financing is an option to consider. Contact our experts at Grecco Capital Finance today to learn more about this arrangement and how it can boost your business.