Scaling a new brand isn’t simply having a great product, but the financial backing to get it from the manufacture to the retail store. New brands have limited capital and fewer options than established businesses. Purchase Order (PO) Financing helps them capitalize on demand without deleting their business. And use existing capital to focus on marketing, product development and growth.
Nerdwallet (https://www.nerdwallet.com/article/small-business/purchase-order-financing) offers a simple definition:
PO financing can be a good option for businesses with a cash flow shortage that still want to be able to complete an influx of orders.
Purchase order financing is a cash advance that small-business owners can receive on their purchase orders. With PO financing, a lender will pay your third-party supplier up to 100% of the costs required to produce and deliver the agreed-upon goods to your customer.
Once your customer receives the goods, you invoice them for the fulfilled order, and they pay the purchase order financing company directly. Then, the PO financing company deducts its fees and pays you the rest.
When you’re ready to learn more, let’s get started.