What is purchase order financing?
Purchase order financing is a unique Financing Program that allows manufacturers and wholesalers to receive up to 100 percent of the funds needed to fill an order when they are unable to do so on their own. This happens for any number of reasons, but is commonly due to cash constraints or lack of credit from suppliers.
Who uses purchase order financing and why?
This type of lending agreement can be used by numerous types of businesses, including:
These businesses have warehouses of goods for sale to retailers and other businesses. When they receive an order, they will need to be able to fill it. If they are unable to do so, purchase order financing could be utilized so they don’t miss an opportunity for growth.
Benefits of purchase order financing
Utilizing this type of financing can provide a company with multiple benefits, such as:
Without purchase order financing, small businesses might not have the capacity or credit to fill a larger-than-usual order. This type of financing agreement allows smaller companies to be able to take advantage of larger orders – such as one from a big box retailer like Wal-Mart, without having to tie up too much capital, or capital they do not have.
In some instances, smaller companies will sell off part of their business so they are able to gain access to capital to fill a large order. Million-dollar orders can be a game-changer for companies, and not being able to fill them can result in lost opportunities, hurt their reputation, and kill the chance of getting future orders. However, with Crossroads Financial, businesses receive up to 100 percent of the funds needed to fill an order, so they don’t have to worry about selling any equity. Crossroads has put in place quality controls that help protect our clients’ interests and ensure their goods are delivered to them in a timely manner. No more lost opportunities; increase sales and increase profits.
Wholesalers and manufacturers that need extra financial assistance filling an order should contact Crossroads Financial to see if they qualify for Purchase Order Financing.
How Can Crossroads Help You?
What would happen to your reputation if an industry giant issued your company a large purchase order which you were unable to fill due to cash constraints? When you partner with Crossroads Financial, worrying about your PO funding will be a thing of the past.
A direct lender to both the US and Canada, Crossroads Financial allows YOU to finance up to 100% of your purchase order. We help our clients preserve valuable cash flow and help them finance their purchase orders rather than selling equity or wiring funds overseas. Crossroads has put in place quality controls which help protect our clients’ interests and ensure their goods are delivered to them in a timely manner.