Limited working capital can create issues for small businesses – especially when they receive large purchase orders from customers. For example, waiting 2-4 months to get paid by your customer can put a major strain on on your business. In short, purchase order financing for a small business can be the lifeline they need to survive.
Small Businesses who are selling in the wholesale markets typically have a lot of non-cash assets on hand. It can be a challenge to keep up with the cash crunch during busy periods. Long lead times from international factories and customers looking for payment terms can be stressful. Purchase Order Funding for Small Businesses is one way to bridge the gap, allowing 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. As a result, you can now produce large amounts of goods on time and 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. Therefore, the program adjusts as your needs change. 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 Financing for Small Business 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 customer Star Funding can cover the costs to produce or acquire the required inventory. After the products are sold, you will 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 or contractor 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 manufacturing sweaters in Midtown Manhattan and Brooklyn. As a result, the principals here understand how Small Business work and what their funding needs are. Simple pricing structures and user friendly processes allow Star Funding to help companies of all sizes and locations.
PO Financing Costs for Small Businesses
Pricing and costs for PO Funding vary based on the set up of the supply chain. There are two types of purchase order financing and they include Finished Goods and Work In Process. The cost of a purchase order funding program is structured based on a 15 or 30 day(or more) time period. This is from the time Star Funding takes exposure on a transaction until the they are paid back. Repayment occurs with 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 23 years of experience Star Funding understands what it takes to satisfy the funding needs of companies. As a result, funding your first PO Financing or factoring transaction can happen in as little as one week.