5 min read
Opinions expressed by Entrepreneur contributors are their own.
Purchase-order financing provides access to funding for undercapitalized, small-to-medium-sized businesses that have high-growth opportunities. This type of financing allows these companies to fill orders that they otherwise wouldn’t be able to handle.
In the world of manufacturing and distribution, cash flow is king. Without cash on hand to fund purchase orders and fulfill contracts, growth is often stifled and customer relationships can be jeopardized.
Small-to-medium-sized companies looking to scale their businesses need capital to make those gains possible. Purchase-order financing is a way for companies to grow their businesses and fill large orders that they likely wouldn’t be able to afford on their own.