How Purchase Order Financing Improves Cash Flow

PO Financing to Improve Cash Flow

Purchase order financing, or PO financing, can help small businesses and startup companies who may be having a difficult time filling large orders. Here’s how it works: Companies use purchase orders to record orders from their customers. These purchase orders, create a contract between a company and their customer. It means that the customer promises to pay after the products are delivered. Because this arrangement creates a contract, it makes the purchase order valuable to companies known as factors. A factor can fund a purchase order from a company and provide them with the cash they need to produce and fulfill their order.

PO Financing to Fuel Sales Growth

Purchase order financing is an often overlooked way to get the cash you need to grow your business. A purchase order signifies a promise to pay and can be used to obtain the cash you need to fulfill your orders. By financing your purchase orders with a PO financing company, you will have the cash to fill new orders. PO financing for sales growth can be a great option for many startup companies and small businesses.

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