For companies that sell products, purchase order financing can be a great way to fund the growth of the business.  Once you have secured that large client and contracted to place your order, you can have often funds advanced to allow you to produce the products thus allowing you to fill a large order where you would not have otherwise been able to. The downsize is that you give up some of the revenue so it takes away from your net profits, but the big upside is that it allows you to grow,  not only by fulfilling an order, but the additional branding that comes with that new distribution channel is sure to pay off in the long run.

Some companies are concerned with losing the up front profits associated with the fees paid for the purchase order financing.  Many of these companies still seek outside investors and often those investors want a stake in the company; a big stake.  The value of purchase order financing is that it is a short term solution which will allow the company to grow, whereas the equity investor results in the permanent loss of equity on your company.

If you have a business with products that are sold through purchase orders, you really owe it to yourself to investigate all of your creative financing options before giving up equity in your company unnecessarily.

Contact us today to learn how we might be able to help you with a creative business funding solution.