For growth-focused businesses, accumulating the capital necessary to expand operations can be a challenging process. Many entrepreneurs are currently at a stage where revenue covers overhead expenses, with a small portion set aside to eventually take things to the next milestone. However, smart entrepreneurs are bypassing conventional methods, and are using PO financing to set growth projects in motion much faster and more affordably.

What Is PO Financing?

PO financing, or purchase order financing, allows businesses to take on large or unexpected customer orders which would otherwise place a strain on internal resources. PO financing is an advance of working capital which is used to fulfill large orders while maintaining regular operations. Once the orders are completed, and the customers remit payment, the financing is deducted, and businesses can take the remainder as revenue. By taking on larger orders without the burden of debt, business owners can accrue growth capital much faster than by taking on just their regular orders, or by taking out loans.

Carving Out A Larger Market Share

When businesses use PO financing, they can take on customer accounts which would otherwise go to larger competitors. PO financing gives businesses the capital to get the materials, equipment, and even the employees to complete orders without feeling a strain on finances and other resources. In essence, purchase order financing levels the playing field, and allows businesses to get a stronger foothold in the marketplace without having to turn down customers and lucrative opportunities.

PO Financing Is Not A Loan

One of the major differences between PO financing and other programs is that purchase order financing does not place any debt on the books. Purchase order financing is a simple advance in working capital, which is rolled into the invoice sent to the customer once the order it completed. This eliminates the need for rigid payment schedules on the part of business owners, and preserves credit ratings. PO financing is also non-recourse, so entrepreneurs do not have to worry about receiving payment on large or unexpected orders once they are completed and delivered.

Stop Waiting For Eventual Growth

Purchase order financing offers a much more flexible and immediate solution for business growth than waiting to accumulate capital from regular sales, or by limiting momentum through debt-based programs. Contact METRIX Capital Group today to learn more about how PO financing can propel your business and allow you to carve out a larger share of the market.