What is Purchase Order Financing?
Purchase order financing is an effective financial solution many companies rely on when it comes to financing large purchase orders. Also known as PO financing, it provides resellers and distributors with the much-needed financial resources so suppliers can be paid expenses associated with the order. It allows them to complete the order and book the revenue.
Who can be benefitted?
Purchase order financing works best for small companies that are growing rapidly and provides a multitude of great benefits. It is basically a loan that’s based on your orders. This type of financing proves beneficial for small businesses, as they often struggle to find the required funding for delivering on their orders. All those small businesses that are suffering from financial crisis look no further than purchase order financing when it comes to satisfying their customers.