Can PO Funding Take Your Business To The Next Level?

By: Marco Terry
Submitted: 2007-01-17 15:36:37
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

If you ask the owner of a successful re-seller or importer company to identify their biggest challenge, their common answer will be: lack of working capital. Working capital is the lifeblood of all resellers and importers, enabling them to pay suppliers and allowing them to grow their businesses. Many times, their ability to grow is directly linked to their access to working capital.

So, where do re-sellers that wish to take their businesses to the next level go to get working capital? The bank? Unlikely, as banks are tough sources of business financing. To qualify for a business loan you'll usually need to provide reports showing three years worth of profitable operations - and - the owner will need to have a spotless credit record. Oh, and if you are a startup, don't bother. Few banks will provide working capital to startups.

Are there any alternate options? Fortunately, the answer is yes. Purchase order financing (commonly known as po funding) is a great source of financing for startups and growing companies that have exhausted their bank financing options. However, you won't find PO Funding at your local bank, you'll find it at your local factoring company.

PO funding is an ideal source of financing for resellers, wholesalers, importers, or just about any business that buys goods from third parties and resells them. PO financing covers up to 100% of your supplier expenses, enabling you to close big sales and deliver on them. As opposed to traditional financing, purchase order financing uses your purchase order as the actual collateral. There are no set maximum limits, and you can finance as many orders as you want, provided that they come from commercially credit worthy businesses or the government, and have profit margins of 15% or more.

Purchase order funding works as follows:

1. You get a purchase order from a client. You place an order with your supplier

2. The purchase order finance company pays your suppler using a letter of credit

3. Your supplier delivers the product and your client acknowledges receipt

4. Your client pays for the goods and the transaction between the parties is settled

Purchase order financing can be an affordable financing option that allows you to expand your business when your bank financing options have been exhausted. It can truly enable you to close very large orders, with confidence, and take your business to the next level.

About Commercial Capital LLC Are you looking for purchase order funding? We can provide you with a competitive po financing and po funding quote. Please call (866) 730 1922 for more information.

Article source: Expert Articles

Most Recent Articles in Entrepreneurialism category

  • Basics of How To Start A Wholesale Clothing Business - By: Jefferson John Babasa
    Wholesale clothing business is one of the growing trends in the wholesale industry. Many people have come to realize the many benefits of starting a wholesale clothing business. So here are important details that an aspiring wholesaler would have to know before starting an online wholesale clothing business.
  • Ideas To Achieve Home Financial Freedom - By: Alastair Hayward
    The desire to get rich is inherent in all of us. We all want financial freedom that will ensure that we control our destiny in life and better still live a comfortable lifestyle. However, financial freedom does not come easy. It requires unmatched creativity and ability to see opportunities even when they are disguised as challenges.
  • Pointers and Tips Before Starting a Wholesale Business - By: Jefferson John Babasa
    Wholesaling is a process in which products from the manufacturer are distributed to all sorts of dealers which in-turn sells the products to the end consumers.
  • Start a Bank - Entrepreneurs and Hedge Fund Managers Pay Attention - By: Brett Schoneman
    Have you ever dreamed of owning your own bank? Well now with the changes in New Zealand banking laws and the modern software applications available, what was once an impossible dream for everyone but the most powerful and rich, can now be a reality for the majority of us. And for much less money than you might think. And it can be very profitable as well.
  • Home Typing Jobs - Traditional vs Non-Traditional? - By: Dina Anderson
    Well first off, lets be clear on the difference between "traditional" and "non traditional" home typing jobs. Traditional home typing jobs often involve transcriptions/data entry, administrative and secretarial work with spreadsheet or word processing software. Although these are legitimate jobs in which you are considered an actual "employee", traditional home typing and data entry jobs do not pay very well.
  • Simple Advices Before Embarking Starting a Clothing Shop - By: Christine Layug
    Today, businesses that involve clothes, big or small, are the most popular trends in business. And that there are more than a hundred of clothing stores and wholesale clothing shop that can be found in malls or on the streets.
  • Flower Exporters from Around the World - By: Timothy Spencer
    The largest gathering of flower exporters from around the globe is annually held at Aalsmeer flower auction. The occasion gives opportunity to wholesalers to directly buy from flower-growing countries. This article discusses the advantages of having the flower traders' assembly in Aalsmeer.
  • I Plan To Venture Out In Wholesale Closeouts As A Business Opportunity - By: Joel McLaughlin
    After doing substantial research on the topic of wholesale closeouts, I have decided that this is the way I'm going when I start my online business. Read about what I discovered regarding this terrific business opportunity because it might be for you too!
  • 4 Excellent Tips On Finding a Legitimate Home Typing Job - By: Dina Anderson
    Contrary to belief, there are legitimate home typing jobs around that are good programs and you can make an excellent income with. However, There are also many scam artists around the world that love to make money off of those people who are in need. Now these scam companies don't care about you. They just want your money and really don't care if you succeed or not.
  • Home Typing Jobs - Scams Or The Real Deal? - By: Dina Anderson
    Within the last five years I have seen literally hundreds of ads for home typing and online data entry jobs. They all seem to say the same thing - "Make $250-$1000 a Day". For a long time I thought to myself "yeah right", There's no way, this has to be scam! So after seeing them around for so long, I became curious and wanted to see for myself.