Limited working capital can create issues for small businesses – especially when they receive large purchase orders or sales opportunities from customers. Waiting 1-2 months to get paid can put a major strain on on a business.
Small Businesses who are selling in the wholesale markets require large amounts of cash or credit to fill orders. It can be a challenge to keep up with the cash crunch during busy periods. Long lead times from international factories may ask for cash deposits and large customers will always prefer open payment terms. Purchase Order Funding for Small Businesses is one way to bridge the gap and help these companies produce and sell their goods.
Having the ability to fund large orders through Purchase Order Funding makes it easy to compete with larger competitors. You can now produce large amounts of goods on time to deliver as necessary. In conjunction with your Accounts Receivable Factoring company you can now secure the up front capital you need to operate efficiently.
More importantly, this flexible funding option grows with a Small Business as purchase orders come in. There is no need to take out high interest loans or make any large funding commitments until you are absolutely sure that you need the money. Additionally, you only take what you need. Small Businesses can use Purchase Order Funding to secure larger orders and offer payment terms to please larger customers
How Does Purchase Order Funding for Small Businesses Work?
There are a number of funding structures that STAR Funding provides for small businesses. They are one of the few PO Funding companies that also offers Accounts Receivable Factoring under the same roof. When your business receives a purchase order from a credit worthy customer Star Funding will cover the costs to produce or acquire those goods for resale. Once the products are sold you will then factor the resulting Accounts Receivable and wait for payment from your customer. Some supply chains may be more complex than our simple explanation. If you are not buying Finished Goods for resale, you may want to look into Work In Process(WIP) PO Funding. Choosing the right PO Funding provider is important. As a small business you may only get one opportunity to work with a major customer and you don’t want to risk damaging a relationship.
How Star Funding Can Help Your Small Business
Star Funding is based in New York City, in the center of the apparel district. The founders of Star Funding come from the apparel industry where they were sweater manufacturers based in Midtown Manhattan and Brooklyn. Coming from this side of the business the principals here understand how Small Business work and what their funding needs are. With simple pricing structure and user friendly processes Star Funding welcomes companies of all sizes to help them with funding for their business.
PO Financing Costs for Small Businesses
Pricing and costs for PO Funding vary based on the set up of the supply chain. The two types of purchase order finance are Finished Goods and Work In Process. Pricing is structured based on a 15 or 30 day(or more) time period from the time Star Funding takes exposure on a transaction until the they are paid back by the proceeds from the sale of the goods. If you want more information on pricing for PO Funding for a Small Business we can help you. A funding advisor will get back to you within 24 hours with an approval.
Apply to secure Purchase Order Funding for your Small Business
If you are looking for additional capital to fill orders from your customers contact Star Funding today. With over 17 years of experience Star Funding understands what it takes to satisfy the funding needs of companies. Funding your first PO Financing transaction can happen in as little as one week.