Opportunities for business growth such as receiving larger orders or bigger accounts often arrive unexpectedly. If a business owner is caught off guard with insufficient working capital, they traditionally had two choices. They could apply for a business loan, adding debt to their balance sheet or be forced to let the opportunity pass them by, stifling business growth. Fortunately, with the increasing prominence of the alternative finance industry in business funding, that’s no longer the case. Among the various funding options they offer, purchase order financing for small business is becoming a popular choice to promote growth.
Purchase Order Financing for Small Business in Action
Let’s say you just got a big order but don’t have enough working capital to cover the cost of the materials to fill that order. With purchase order financing for small business, your funding provider would verify with your customer that they agree to pay for the order upon delivery. Your provider will then pay your supplier. Most alternative funding companies pay 80 – 90% of the supplier’s invoice and have the business owner pay the balance themselves. Once the order is filled, your customer would pay the provider directly and you would receive payment of the order minus a previously agreed upon fee to the provider.
Never Turn Away Another Order
Turning away an order or delivering it late can severely damage the reputation you’ve worked so hard to build. It will send those customers right to your competitors which is the last thing you want to do when trying to grow your business. By shouldering a much smaller upfront expense, business owners are able to take on large or unexpected orders without impacting their daily operations. Purchase order financing for small business allows you to take on every order you receive, deliver them on time, and keep your business moving forward.
Avoid Taking on Additional Debt
Why take on long term debt to cover short term cash flow issues? Alternative funding options such as purchase order financing for small businesses often get a bad rap for being too expensive. The interest on a traditional business is hardly a bargain. Alternative funding providers charge a fair and reasonable fee to provide you with the short term capital you need without putting your business or personal assets at risk. Purchase order funding is basically just an advance on money that is already owed to you.
Working Capital When You Need It Most
If you’ve ever applied for a business loan, you know it can be a long, drawn-out process with a large amount of paperwork. By the time the loan is approved, your customer has moved on to one of your competitors who can deliver their order on time. With purchase order funding for small business, your application can be approved and you can receive funding faster.
Scales with Business Growth
Business owners who have used purchase order financing to keep up with the demands of business growth often find that their reputation for reliability promotes additional growth. Once you’ve established a relationship with an alternative finance provider, purchase order financing for small business can scale with your business and keep it growing without missing a beat.
Purchase Order Financing with CFG Merchant Solutions
At CFG Merchant Solutions, we believe purchase order financing for small business, as well as our other financing options, are a great way to promote business growth. We will guide you in choosing the perfect solution for your individual business needs. We are not bankers or middlemen. We are direct funders that care about your business. We are entrepreneurs ourselves and have experienced first-hand the frustration in acquiring flexible and timely financing. CFGMS uses proprietary analytics and technology, along with good, old fashioned common sense underwriting to provide fast and efficient access to capital. Contact us or apply online today!