PO Financing: Debt Free Growth Capital

Purchase order financing, or PO financing, has come to the forefront as of late. New and small businesses trying to grow in a competitive marketplace are trying to find sources of capital without taking on debt. Traditional bank loans are becoming more cost prohibitive and harder to access for independent entrepreneurs. To level the playing field and get a larger market share without the restrictions of traditional loans, more business owners are using PO financing.

How PO Financing Benefits Small Businesses

PO financing is an advance in capital which growth-focused business can use to take on large client orders. This capital can be used for everything from raw materials, acquiring extra equipment, hiring additional employees, and anything else needed to complete orders. Once the orders are filled and shipped, invoices are sent to the customers. When the customers settle the balance, the purchase order financing is deducted from the amount on the invoices, and the difference becomes revenue for the business. What this means is that larger orders yield larger revenues, and the financing does not place a strain on cash flow for the businesses that use it.

Debt Is Not An Issue With PO Financing

Purchase order financing works very differently from traditional bank loans. Traditional lending methods impact business credit ratings, place debt on the balance sheets, and have drawn out payment schedules. PO financing, instead, does not require credit checks on your business, nor does it negatively impact your business credit ratings. Additionally, and perhaps most importantly, PO financing is a zero debt solution. Businesses using this form of financing do not take on any debt, so they can focus more on growth and expansion.

Take A Larger Part Of The Market

For the longest time, new and small businesses had a reason to worry when large client orders walked through the door. Either they could accept the large orders and suffer through the strain on both logistics and finances to deliver both on big orders and regular customer requests, or turn business away and let potential customers go to competitors. Instead of leaving money on the table, PO financing lets business owners carve out a larger part of the market by taking on customers who would otherwise get pushed to big competitors.

Get The Growth Capital You Need Today

If you are trying to position your company for growth, contact BG Capital Funding Group. We have a wide array of debt-free financing solutions to ensure the growth and success of your business for years to come.

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