.jpg)
Perhaps you have heard about purchase order financing before and you are wondering if it could benefit your current business plans. This type of financing is designed to help you fill orders that you receive from customers even when you don’t necessarily have the means to do so at the time. The size or the order has little bearing on the transaction, it’s more a matter of protecting your business and ability to fill orders should the money run a little low. This financing can be a great solution in that it’s only there until the transaction is completed, then you no longer have to worry about it. If you are in a pinch but need to protect your business reputation and get the orders out, then purchase order financing may indeed be right for you. Here are some of the ways that this kind of financing can actually help your business grow:
1. Financial Margin
The primary benefit of purchase order financing is that it leaves your company with financial margin to do what they need. Oftentimes (especially with new companies) the cash flow can be a bit tied up, making it difficult to invest in growing your business. With this financing, you have a very temporary loan and you have someone else tending to the details of it, so you can have margin in your budget for growth.
2. Equity is Maintained
Another great factor about this financing for new businesses is that it allows the new business to maintain their equity. It’s a transaction-based loan, so you don’t have any of your own business equity wrapped up in it. A lot of new business loans do require some level of owner equity involved, so having a financing option that doesn’t require it can be a huge advantage for some.
3. Simple and Flexible Solutions
One way that new businesses can tie their own hands is by agreeing to loans too complex or confining to allow any kind of forward motion. Flexibility is a virtue when it comes to decision-making for new businesses. This financing is designed for this kind of situation and operates to help you maintain a level of flexibility and offers simple payment solutions to help you further your company’s progress.
In short, purchase order financing offers a non-traditional solution that frees up your company, protects your equity and offers simple repayment strategies. Learn more about this kind of financing today to see if it may be right for your business.
-
Call JC Smith 704-275-8778 Your Money Hero and let's discuss options.
Yorumlar