Why Use Purchase Order Financing?

Creating a quality product or service can take years and a vast amount of money. But once it is created, the business owner can rest easy, right? Wrong! As many business owners know, creating the right product is only half the battle. Next comes getting the market to recognize your product’s value, and after that comes fulfillment troubles. When large purchase orders come in, many businesses cannot keep up with the demand their product has created. This can be a serious hurdle for new businesses when they cannot deliver their product to hungry customers. Lucky for these businesses, purchase order financing is available.

Purchase order financing is advanced to a company with large purchase orders they cannot fulfill. A lender, like Ace Biz Funding, loans the working capital to complete the order and charges a percentage. The company is then able to fulfill the purchase order. This is necessary, because customers will not pay you until they receive your product. Additionally, your manufacturer will want to be paid in advance. These two problems are intertwined because oftentimes, customers place large orders, which will require you to pay a hefty sum of money to your manufacturer.

Having a purchase order in hand is a big deal. It means the market has responded to your product and believes it will sell. It is also important you recognize it as an asset, not as a wall. While fulfilling it may be an obstacle, it is still valuable in the eyes of lenders.

At Ace Biz Funding, we understand all the problems facing businesses with purchase order financing problems. That is why our PO financing program is flexible and fast. We offer purchase order financing for publicly traded and private companies. Inventory in transit borrowing is also available. We finance up to 100% of existing purchase orders and can offer inventory-only lines of credit for large retailers. Ace Biz Funding can also unlock cash from existing inventory. And to make it even easier, our simple application can be completed in just a few minutes. Your business can receive up to $90,000 that same day, and up to $500,000 the next business day!

If you have customers that have placed orders you cannot fulfill, you should consider purchase order financing from Ace Biz Funding. PO financing will help you get your product manufactured, delivered to your customers, and will help your business grow. Get started with our simple application, or contact one of our PO experts at Ace Biz Funding today!