You have the contract and the order, and your worst business nightmare has just come true! But what now? When your company is unable to traditionally finance significant new orders and ongoing growth, how can a Canadian business survive financing adversity?
The solution is P O factoring, which gives you quick access to lenders who offer inventory financing. Let’s take a look at some real-world examples of how our clients get the kind of financing they need to get new orders and the products they need to fill them.
Your best option is to contact your banker and inform him that you require immediate bulge financing, which will quadruple your existing financing requirements, in order to fulfill new large orders. Okay, we’ll give you time to stop laughing and get up from the chair.
To be serious, however, we are all aware of the fact that the majority of small and medium-sized businesses in Canada are unable to obtain the business credit they require to resolve the issue of acquiring and financing inventory in order to meet customer demand.
So, nothing has changed—absolutely not. In Canada, independent finance companies can provide purchase order financing; you just need some help navigating the minefield of who, how, where, and when.
Your ability to fulfill large new orders is challenged by your company’s financing. P O factoring is a likely solution for this reason. You can finance purchase orders for large or sudden sales opportunities with this one-time or ongoing transaction solution. Until you are able to produce products and issue invoices to your customers, funds are used to finance the cost of buying or manufacturing inventory.
Are inventory financing lenders the best choice for each business? Financing is never perfect, but it will almost always provide you with the necessary working capital and cash flow.
P O figuring is an exceptionally remain solitary and characterized process. Let’s take a look at how it works and how you can benefit from it.
A clearly defined purchase order from your customer—who must be creditworthy—is one of the most important aspects of this type of financing. P O Factoring can be done with customers from Canada, the United States, or other countries.
PO financing involves paying your supplier in advance for the product you require. The finance company provides collateral for the transaction’s inventory and receivables. Your invoice is financed at the time it is created, clearing the transaction. Thus, you have effectively paid for your inventory and billed your product, and the transaction is concluded when your customer pays.
In Canada, P O factoring and inventory financing are two kinds of financing that cost more. You need to show that your gross margins are strong enough to handle an additional 2% to 3% per month in financing costs. You are an ideal candidate for p o factoring from Canadian inventory financing lenders if your cost structure permits it, your product is marketable, and you have a lot of orders.
Do you not want to go through that maze on your own? Talk to a Canadian business financing expert who you can rely on to help you get the most out of this increasingly popular business credit financing model.
