Big Order? 4 Reasons PO Financing Is Your Small Business’s Best Option
For small businesses, that first big order is a milestone. With PO financing, your business can fill that order without skipping a beat. Wondering whether purchase order financing is right for you? These four reasons might make it your best option.
Keep Growing Your Business without Taking on New Debt
It’s a catch-22—small businesses need to fill that big purchase order in order to have enough working capital to grow, but to fill that order then need more working capital. Businesses have many different funding options, but unlike loans and credit cards, PO financing allows business owners to continue growing their brand without taking on new debt.
Instead, with purchase order financing, entrepreneurs and business owners like you pay a fee to the financing company out of the profit from the order.
You Lose No Equity
One decision that many business owners face is whether to sell part of their business to fund growth. Owners are usually reluctant to do this. No only could they lose control of the business they have worked so hard to build, but also investors can usually sense when funding is essential, which gives them an upper hand during negotiations.
PO financing does not lead to lost equity in your business. You will retain ownership of your business and continue to run it how you see fit.
Filling a Big Order Could Lead to More Big Orders
In order to make it in business, you have to be constantly working to grow sales. Landing a big order can act as a catalyst to build your reputation. If you fill an order successfully for another business, they are likely to return again and again as well as refer you to others.
That’s a big deal, so it is critical that you make the moves necessary to fill that first order. Purchase order financing is a low-risk funding option that could lead to great things for your operation.
PO Financing Is One of the Fastest Funding Options
If you have ever taken out a loan from a bank, you know that it can take months to get approval. When you have a customer who needs an order filled as quickly as possible, waiting months is out of the question. Your customer will go somewhere else to get what they need.
It’s not only a lost sale that you have to worry about, either. In the same way that your customers spread word about your business when you deliver services above and beyond the expectation, they will also talk about you if you can’t meet their needs. Each sale is an opportunity to showcase your abilities and commitment.
Let’s Talk about Your Needs
If you have an opportunity to deliver for a customer but don’t have the capital to get the job done, then it is time we talked. Tell us what you need and we will work with you to give your customers reason to come back.