Purchase order financing is a funding option for businesses that may need some extra cash to fill their clients’ orders. Cash flow problems like this can easily arise in any business. There can be times where you might simply just not have enough money on hand to cover daily operating costs. A result of this happening can be not being able to fulfill an order from a client because of a lack of cash. Having to turn down orders means not only a lack of potential revenue for your business, but it could consequently lose that client to a competitor.

Purchase order financing is an advance on a purchase order for supplies, but may not cover the entire amount (although it will cover a pretty large portion of it). In some cases, companies can even qualify for 100% financing. This is a paid service and the financing company makes their money by charging your company a few small fees, which are taken out of the collected invoice. The remaining amount is then returned to your company.

To learn more about how CoreFund can help fund your business through purchase order financing, contact us today!

Post written by Senior Copywriter “Nikki Wakefield” of CoreFund Capital, LLC.