Grow Your Business with Purchase Order Loans
As a business owner, it’s crucial that you approach your financing options carefully. You don’t want to tie up your assets or overextend yourself to an extent where you compromise your growth. To satisfy customers and to place manufacturing orders, you must have the money to do it. Purchase order financing may be the key to growing your business.
Forget Credit Checks
Like any responsible business owner, you must maintain a strong credit score. If your credit ends up a hit, you could have trouble receiving financing later. With purchase order loans, you don’t have to worry about your credit score being analyzed. Instead of your credit being the one under scrutiny, the lender looks at the client who placed the order with your company. If your client has a good credit rating and pays his or her invoices, then you may receive funding and you can keep your credit intact and use it for other financing options later.
Worry Less About Collateral
It’s important that you’re able to retain your business’s assets. If you apply for a loan from a bank, you may have to put up business furnishings, equipment, or other assets against the loan. With purchase order financing, on the other hand, your invoices are your collateral. You don’t have to put up any of your assets. Your equipment is vital to the running of your business as well as the growth of your business. If your assets are seized by the lender, then your business could go under extremely quickly. Therefore, purchase order loans tend to give owners peace of mind.
Retain Your Profits
Businesses grow when you retain your profit. In traditional bank loans, you can lose your profit through extended payments or high-interest rates. Purchase order lenders, on the other hand, allow you to keep your profits. The fees that they deduct come from the manufacturer’s payment. When the lender receives payment, it removes fees and passes the rest of the money to you. You can take this money and invest it into your company so that your business continues to grow.
When the growth of your business is at stake, traditional loans may turn out to be more of a burden than an advantage. If you use purchase order financing, you don’t have to worry about the hassle of a credit check, turning over collateral, or losing profit. Instead, you can focus on your business growth.