How to Get PO Finance in 24 Hours

Managing your own small business can be a very challenging endeavor. At the start you may worry about how to get your business running, and it can take all of your expertise and effort to succeed or even to stay afloat. And then when you suddenly find yourself in a position to grow, you find that circumstances can force you to hold back. But with PO finance in 24 hours, you can still forge ahead and claim the success you’re meant to have.

What is PO Finance?

Let’s say that you have an order to fulfill for a new customer. You’re tasked to deliver 10,000 gadgets to your customer within a given amount of time, and you’ll be paid $100,000 for the entire order if you deliver. You have the contacts and the knowhow to get those 100,000 gadgets delivered on time, and the total expenses will only cost you $60,000.

That means you can get $40,000 in profit. But there’s a big problem. You don’t have $60,000 to begin with.

And that’s where purchase order finance comes in. The finance company opens a line of credit so that the suppliers are paid, and it also usually takes care of the collection of the payment from the customer. Once the customer pays in full, the finance company takes back what it used to pay for the supplies plus a fee for its services, and you get the rest of the profit.

Advantages of PO Finance

The main advantage of PO finance is that you can get the funding much more quickly than if you applied for a loan. In some cases, you can get approval for PO finance in 24 hours. That’s a huge difference from the many weeks you need to get a bank loan.

The reason for the speed difference in the two funding methods is that with a bank loan the bank needs to make sure of your company’s financial ability to pay back the loan. That means lots of paperwork that proves the financial health of your business. In addition, banks also need collateral for their loans as well.

In PO finance, all the finance company needs to know about your company is its ability to fulfill the purchase order. The finance company doesn’t need to know the quality of your credit. Instead, the credit history and the propensity of your customer to pay fully and on time are investigated. All these factors determine the size of the funding.

So if you have a fairly stable and reputable customer, then you can get approval of the funding in 24 hours. Setting up your line of credit is very quick, and a schedule is also drawn up so that the finance company can be assured that you’ll be able to deliver on time.

Because you can now avail of PO finance in 24 hours, you no longer have to turn down purchase orders even if you don’t have enough working capital. You can grow your business if demand for your products increase, and at the same time you can also establish a reputation for meeting orders on time.

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Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

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