urchase Order Financing – What It Is and How It Works
Every business succeeds or fails in accordance with its ability to meet its capital needs. Purchase Order Financing is a financial services product designed for companies who face a significant capital outlay with each new order.
These companies are frequently Manufacturers, Distributors, Wholesalers, Retailers, Importers and Exporters. These businesses have similar capital expenses to other businesses, but their business model requires them to constantly purchase and resell some capital asset.
We at VeoGlobal LLC are proud to be able to help you with your financial needs whether it be Invoice Factoring, Equipment Loans, Line of Credit, Bridge or Term Loans or many other types of Financial Services, so if you are needing financial help, please feel free to call 210-712-0724 or Click Here and someone will get back with you as soon as possible!
These companies’ ability to profit and to grow is closely tied to their ability to finance the materials or products for manufacture and resale.
Without access to sufficient capital, even if they are able to find a profitable new market or they are offered a surprising or exciting new contract, they cannot proceed.
No manufacturer can meet an order for widgets if they can’t get the materials to make widgets with.
That is where Purchase Order Financing comes in. When your company finally lands that big order or that new account at the same time that your established customers suddenly have a huge uptick in demand, you should be laughing all the way to the bank.
If your business can’t afford to purchase the raw materials or inventory to meet that demand, you are going to be crying, not laughing.
Purchase Order Financing is your solution to this situation any other set of circumstances that limits your ability to obtain the materials or goods that you need to supply your customers. When your company needs Purchase Order Financing, a company like VeoGlobal buys your supplies for you.
You meet your customer demand and when the invoices are paid in 30, 60 or 90 days, you repay VeoGlobal the cost of the goods or materials plus a small markup.
Purchase Order Financing is very advantageous to the small and medium businesses. First and foremost, the process is invisible to your clients. From your client’s perspective, they requested a significantly larger order, and you delivered perfectly.
Not only is the transaction profitable for your company, it enhances your company’s relationship with that customer and its position in the market.
With purchase order financing, your sales force is free to aggressively pursue business to the very limits of your current ability to supply.
Another advantage is that your ability to obtain Purchase Order Financing is based more on your customer’s credit history than on yours. When you apply for PO Financing the lender is going to look at your customer’s ability to pay.
With a financial services company like VeoGlobal, we are able to offer PO Financing to your company from the very first contract.
If your company has the expertise to meet the client’s needs, we can get you the materials and goods that you need to succeed.
VeoGlobal is an established financial services company with over 20 years experience in the US and Canada. We have a long history of helping companies just like yours meet their capital and financing needs.
VeoGlobal understands your capital needs. We are ready to help you get the services that you need to be profitable, competitive and successful
VeoGlobal is ready right now to help your business be profitable and grow. We can provide a wide variety of financial services from a loan for a few thousand dollars to supplying your company up to $20,000,000 or more a month in a variety of loans and services.
Always professional. Always ready. VeoGlobal – Your success is our success.