You have just experienced your worst business nightmare – you’ve got the order! But what now? What can a Canadian company do to survive financial adversity if it is not able to finance large orders or ongoing growth?
Answer: P O factoring, which allows you to get inventory financing lenders whenever you need them. Let’s take a look at real-world examples of how clients have achieved business financing success. We can help you get the financing that you need to purchase new orders or the products that will fulfill them.
This is your best option: Call your banker and tell him that you require immediate bulge financing to cover the cost of new large orders. Okay, we’ll let you have a moment to get up from the chair and not laugh anymore.
We all know, however, that most small and medium-sized businesses in Canada are unable to access the credit necessary to finance inventory acquisition and financing to meet customer demand.
It’s not all over, however. Canada has independent finance companies that can provide purchase order financing. You just need some help in understanding the maze of who, what, where, when, and how.
Large orders can be difficult to fulfill depending on how your company finances. P O factoring is an option. This is a transaction solution that you can use for one-time or ongoing purchases. It also allows you to finance large sales orders. You can use funds to finance the purchase or manufacturing of inventory, until you are able to invoice clients and generate product.
Is inventory financing the right solution for every company? Although financing is not always the best option, it can often provide you with the cash flow and working capital that you require.
P O factoring can be used in a number of ways. Let’s look at how it works and what you can do to take advantage of it.
A clear purchase order from your customer is essential. This customer must also be credit-worthy. P O factoring can be done for your Canadian customers, U.S. clients, or foreign customers.
PO financing is where your supplier gets paid in advance for the product that you require. Finance firms will collateralize the inventory and receivables that result from that transaction. The invoice is funded when it is generated. This clears the transaction. You have basically paid your inventory, invoiced your product and the transaction is now closed.
Canada inventory financing and P O factoring are more costly forms of financing. It is necessary to show that your gross margins are strong enough to absorb 2-3% more monthly financing costs. If your cost structure permits you to do so, and you have good product and orders, you are a great candidate for p.o factoring from Canadian inventory financing lenders.
You don’t want to have to figure this maze on your own. Talk to a Canadian trusted, credible and experienced business financing advisor. They can help you maximize the potential benefits of this popular and growing business credit financing model.
