Press Release: Purchase Order Funding Helping Companies Finance Big Orders
(PRLEAP.COM) Miami, Florida – Resellers and distributors can now accept larger orders with confidence, knowing that purchase order financing will help them pay their suppliers, deliver the goods and make the big sale.
A huge challenge for small companies is getting a very large order. Sure, that can be a blessing if they have the resources to deliver on it. But it can be a nightmare if they don’t. Purchase order financing is a tool that helps small and medium sized business owners deliver these large orders. It covers all supplier payments, enabling them to sell and deliver products with confidence. Furthermore, the transaction is settled once the end customer pays, making it a very flexible form of financing.
“Purchase order funding is really a great tool for resellers and distributors that are selling to large commercial or government customers,” said Marco Terry, president of Commercial Capital LLC. “It really gives them the necessary financing to take their business to the next level,” he added.
A po financing transaction is very simple. Once a client has a confirmed purchase order, the financing company provides letters of credit (or similar instruments) guaranteeing payment to the suppliers. With these in hand, the client can obtain the necessary products to deliver the services. The factoring company settles the transaction once the end customer actually pays the invoice (using invoice factoring). This structure allows clients to close transactions with little – if any –money of their own, making it an ideal product for startups or companies that are growing very quickly.
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