Asset Based Loan

If you find yourself in a pickle upon receiving a large order from an established client what do you do? Many small companies simply do not have the capital built up to handle large orders and many people will inadvertently turn large orders away because they feel that they cannot satisfy their needs.

You do not need to turn large companies away simply because you do not have the funds to satisfy their order. You should consider engaging in purchase order financing to help you obtain the necessary funds that you need in order to satisfy the needs of larger clients.

What can purchase order financing do to help your company?

Purchase order financing is a funding tool that can give you the amount of money that you need in order to finance some of the biggest orders your company has probably ever seen. You will be provided with the necessary funds to be able to fulfill your customer’s orders without having to worry about your company’s low capital.

Purchase order financing relies on the financial strength of your customer as opposed to bank loans that look at the financial strength of your company. This means that if you are interested in selling your goods to larger companies purchase order financing can give you the necessary funds that you need in order to be able to do so.

Who qualifies for purchase order financing?

In order to qualify for purchase order financing your company must sell goods not render services. An ideal candidate for purchase order financing will be someone that is a product reseller or distributor that is just getting started in the business.

Your invoice is what acts as your collateral. You will submit your invoice to your client and then another invoice to the purchase order financing company. They will then be able to render the amount that your client owes you, minus any fees, to you in as little as 24 to 48 hours.