How Expanding Businesses Can Use Purchase Order Financing
There is a common problem that small business owners whose businesses are rapidly growing face. As business picks up more and more, it is common for a large client to place an order so large that the owner does not have enough capital to fill it. When this happens, they have two options. Either they can turn the client away, or they can take advantage of purchase order financing. This is a special kind of financing designed specifically for this situation. It offers several special benefits over traditional loans. Turn to Elite Capital Financing to learn more about order financing and whether you could benefit from it.
How it Works
The first thing that happens once you are approved for purchase order financing is your provider will be paid for the materials you need to fill the order. You are free to do your work as you normally do, and take measures to satisfy your customer as normal. When you complete the work and accept payment, a few small fees are taken, leaving you with the rest of the profits. This provides you with several benefits:
- No damage to your reputation
- No loss of equity
- Short time to be approved
- Improve your market share
- Avoiding bank debt
If you could benefit from order financing, give Elite Capital Financing a call today.