Purchase Order Financing: Removing The Idea Of Competition

Small businesses need to make sales and grow in order to thrive in a competitive marketplace. However, taking on large customer orders is not always possible for small and emerging businesses without placing a huge strain on finances and resources. To remedy this, many businesses are using purchase order financing to not only take on large customer orders, but to accumulate capital for growth and handle the same volume as bigger competitors.

What Is Purchase Order Financing?

Purchase order financing is an advance in capital used by small businesses when large customer orders walk through the door. The capital from purchase order financing is used for labor, materials and anything else needed to fill the large order. Once the order is delivered, and the customer has paid the invoice, the advance is deducted and the remainder is delivered as revenue. Larger sales mean more revenue, and because the cost of the financing is rolled into the invoice, the customer pays for the funding. Small businesses use purchase order financing for rapid growth.

Stop Losing Sales To Competitors

Purchase order financing gives small businesses the capital to get the resources and equipment necessary for large or unexpected orders. Far too often, small businesses drive customers to seek out competitors when they cannot take on large requests. This financing solution levels the playing field, which increases sales.

No Loans Necessary

The traditional method of getting the working capital necessary for growth and to accept large customer requests was to take out a short-term loan. However, the time it takes to process a loan application, combined with the high requirements set by banks makes it rather pointless, especially for time-sensitive orders. Purchase order financing can be arranged quickly, and does not force businesses to assume unnecessary debt in order to access the capital they need. Business owners get to preserve their credit ratings, and secure a stronger place in the marketplace while accumulating growth capital.

Learn More About Growth Solutions

At BG Capital Funding Group, we provide solutions for new and small businesses that want to position themselves for growth, while sidestepping the pitfalls of traditional loans. Our team has the years of experience and the depth of knowledge to arrange the financing you need to carve out a larger market share and achieve long term success. Contact our offices today and put our expertise to work for you.


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