Purchase Order Financing Saves the Day

While many business owners are aware that they can sell invoices to factoring companies for cash, many aren’t aware that they can also finance purchase orders as well. Purchase orders are contracts that are created between a customer and a business for the future delivery of goods and services. They usually represent larger orders, which means significantly higher upfront costs for the business when they deliver on the order. Many businesses may find that attempting to fulfill bigger and bigger orders is difficult because of a lack of necessary working capital needed to create the products. At this point a business is faced with a decision: take out a loan or finance the purchase order to a factoring company in exchange for fast cash.

By financing the purchase order through a factor and also factoring invoices, the business can get the money it needs to deliver on its promise to its customer, ensuring satisfaction and creating a relationship that may result in future transactions. And, since this isn’t a loan, the business has no obligation to repay the money, protecting future cash flow.

For more information on Universal Funding and the financial assistance that we can provide your business, give us a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.

5 thoughts on “Purchase Order Financing Saves the Day

  1. Sue Imann says:

    Simply wish to say your article is as amazing. The clarity in your post is just great and i could assume you’re an expert on this subject. Thanks a million and please keep up the enjoyable work.

  2. Heather Burford says:

    Thanks Sue! We do feel like we have assembled a great team of experts in this field and can provide the best advice and services to companies researching invoice factoring.

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