It may seem like a dream to receive quick cash for your business with no collateral required, but purchase order financing really does exist. If you have lots of orders to fill and need funds to order parts, for example, this financial option could be ideal for your needs. You can get your products to your customers (and fulfill those POs) quicker, make a great impression and receive prompt payment. The funds can be used for any business purpose. Here’s why many business owners find this financing method a great asset for cash flow management.
What’s So Great About Purchase Order Financing?
Purchase order loans are a popular option in the business community. Here’s why:
- Fast cash – The most efficient lenders can fund purchase order loans quickly, often the day after you apply. The fastest processing occurs once you have an established relationship with the bank or lender.
- No credit hit – Purchase order lenders won’t need to run a hard inquiry, or any at all, on your credit report. (These credit checks can lower your score.) Lenders typically check the credit of the customers who’ve placed the purchase orders with your company instead. If your customers have a solid reputation for paying their bills, your purchase order financing can be quickly approved and funded.
- Collateral not needed – With a PO loan, you need not tie up crucial business assets, like property, tools, vehicles, computers, furniture and/or other equipment. The purchase orders act as your collateral instead.
- Keep your profits – With purchase order financing, the lender receives payment from your customer and credits those funds to you right away, minus the loan fees. This way, you can save money and use it to grow your business, rather than paying high interest over long terms for a standard business loan.
Explore financial options for business growth, including purchase order financing, at Purevue Capital. Contact us today.