There is nothing more exciting for a new company than receiving the first signed purchase orders. The problem with this, however, is finding the money to fulfill the orders. New businesses and small companies oftentimes suffer from a lack of adequate cash flow, especially when it comes to fulfilling larger orders for customers that may or may not pay for 60-90 days. So, where can these companies turn for cash?
The answer is Universal Funding. Universal Funding is a factoring company that provides purchase order financing for companies that need capital to fulfill orders. Purchase order financing is different than traditional factoring in that PO financing allows companies to pay suppliers so that the product can be delivered. In a traditional accounts receivables factoring relationship, companies sell their invoices to a factoring company for a discounted value. The products have already been made and delivered to the customer. However, like traditional A/R factoring, purchase order financing does not require repayment. Rather, the upfront payment in exchange for the future receivable.
Purchase order financing is a great way for new businesses and small companies to get access to the working capital they need to grow their businesses fulfill purchase orders and even accept larger orders that were previously out of reach. When PO financing is coupled with invoice factoring, companies in manufacturing get a cash infusion that covers production expenses as well as overhead costs that may be unrelated to a specific order. Call 1-800-405-6035 today to speak with one of our Business Development Specialists, or fill out a request to have someone give you a call.