Factoring Services for Small & Medium-sized Businesses


Is Purchase Order Financing Right For My Business

purchase order financing.jpgStartups and small businesses face a variety of challenges, a lot of which have to do with unsteady capital. When you are low on valuable inventory that could boost your sales and business growth, it can be stressful to face a supplier who wants money up front. Though it is an unfortunate fact of business, a lot of great ideas and hard workers are left in the dust once the money dries up. Even when practicing great preventative habits, there will be times when you do not have the capital you need for inventory right away.

What Is Purchase Order Financing?

Purchase Order Financing is a credit advance to your supplier when you do not have the inventory in stock to facilitate a sale. There will be times when you need inventory from a supplier and, unfortunately, they just aren't willing to wait around for you to get the money. It is not always feasible to pay a supplier up front, though, and in those times an alternate route is necessary. In times when the money just isn't there for inventory, it may be a good idea to look into Purchase Order Financing.

This option can help in a number of ways, including:

  • Providing invoice factoring after your order has shipped
  • Funding the cost of inventory
  • Giving businesses the capital they need to succeed and prosper

Who Does it Help?

This practice helps businesses that rely on inventory the most. If a shortage of inventory and time is considered detrimental to your livelihood, or if you know increasing your inventory would help your business grow, Purchase Order Financing is a great solution. It caters to those who do not have two essential things when talking to a supplier: time and money.

Things to remember when considering Purchase Order Financing:

- Both you and your supplier should have solid backgrounds.

It is important to assure that you are experienced in your field and that your vendors have solid backgrounds. We make the transaction easy by providing all the research necessary to assure your supplier is trustworthy and worth the hassle.

- Catamount Funding is not a bank.

We do not practice in long, arduous processes to choose who gets money and who does not. The main focus will be on the actual transaction and its probability of succeeding. Your business benefits from accelerated invoices, recovery from prior downturns and the ability to capitalize on an opportunity to promote profit.

- There are certain things Purchase Order Financing does not handle.

Since Purchase Order Financing scrutinizes the potential of the transaction and not the business itself, there are certain aspects that don't qualify for it. It does not handle shaky grounds like consignment transactions and long-term manufacturing in favor of proven successes.

Purchase Order Financing is best for small businesses and startups who need inventory, have solid history and are working with reputable suppliers. It is a highly effective solution to turning a lack of capital into a much-needed supplies as quickly as possible. If you think this would be a good fit for your business, contact us today for a free consultation! 

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Without Catamount we would not be where we are today...period. They have been a tremendous help and are very supportive!

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