Small businesses are constantly threatened by countless challenges, one of the most prominent being financial crisis that can come in many forms. Working with limited capital can be difficult, and even detrimental to your business, as businesses must grow in order to succeed. Funding is often necessary, but it can be very difficult to know which option to pursue for the best results. When it comes to traditional loans and purchase order funding, not understanding the differences can make it even harder to decide; therefore, we have provided the key differences between the two, to better assist with this important decision.
Purchase Order Funding
• Because it is transactionally focussed, purchase order funding is a short-term commitment. It makes it much easier to project and plan for the future, as PO financing companies generally do not ask for payback of loans.
• Instead of relying only on past cash flow or balance sheets, purchase order funding look at sales opportunities and similar areas.
• Purchase order funding can be developed and applied in a matter of days, which allow for quick growth and better availability.
• Based on your business and it’s unique opportunities, PO can be incredibly flexible to better suit your business needs.
• Unwilling to provide the capital necessary to grow your business through new opportunities.
• Require unnecessary paperwork.
• Traditional loans offer a fixed loan that can only be changed though extensive paperwork.
• Are provided based off of past history
PO funding is a great way for your business to get ahead, especially for struggling businesses. Knowing the advantages of PO funding and the various disadvantages of other options makes deciding on a funding option significantly less stressful. Purchase order funding will provide your business with the funding it needs to succeed, so consider PO funding with Bull Market Capital Lending today.