Factoring Services for Small & Medium-sized Businesses

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Using Purchase Order Financing to Help Cash Flow

purchase order financing for small business.jpgEven when business is good, great, and beyond, there are times when the very money you’re anticipating can topple you. This is especially true when it comes to net 30 invoices. While the work is still done and financed through the business, the payout is not available up front. This can lead to serious cash flow problems (and considering that not every business works one client at a time, this can be detrimental for concurrent work). Many people are caught between a rock and a hard place when it comes to cash flow and taking on such clients; they must complete the work or deliver their goods before the money hits their accounts. The damage done can cause a business to go under quickly.

A lull in cash flow does not have to lead to a failing business. Purchase Order Financing is one of the ways people are taking control of shaky capital. Without proper cash flow, even work that has already been invoiced can become a hassle to complete. Purchase Order Financing solves that by providing money you’ve already earned that can be spent to finish the project, or even to handle other necessities. It helps most when you’re dealing with a multitude of cash flow issues, including but not limited to:

  • Payroll
  • Shortage of supplies
  • Dwindling cash flow between contracts
  • A slow season

More than likely, a little help with working capital is all you need to keep your business thriving and growing.

PO Financing can help to increase this budget, giving you more cash flow to attend to these important aspects of your business. These transactions can happen as often as you need them, erasing the woes of slow seasons completely. In most cases a PO finance is done is a matter of days, giving you time to deal with more pressing matters. When it comes to dealing with payroll, time is of the essence. Workers will only put up with late checks and unrewarded work. Even with an unhealthy economic climate, it’s a heavy feat to find remarkable workers (and it’s a shame to lose it once you’ve found the needle in the haystack).

Purchase Order Financing doesn’t always have to be an emergency turn. Sustaining and increasing cash flow when you’re not going through a crisis puts your business at an advantage. It can also help to increase a budget when you need the additional funding.

When cash flow problems arise, PO Financing is a viable option to solve your troubles. The ability to give yourself the time, money, and confidence to run your business on your own terms is one of the greatest advantages of the modern world.

 

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