Purchase order financing is a funding option for businesses that need cash to fill single or multiple customer orders. In many businesses, cash flow problems exist. There will be times where there is simply not enough money available to cover the costs of doing business. As a result, there may be an order from a client that isn’t able to be fulfilled due to a lack of cash. A company may not be able to afford the supplies necessary to meet the client’s particular needs. Having to turn the order down would obviously mean a loss of revenue and perhaps even a tarnished reputation.
If word gets around that a company is turning away business because they can’t afford to complete jobs, customer trust is diminished. Groups that considered giving that company their business will likely think twice. Therefore, to avoid such scenarios, it is imperative that businesses find the money that they need. For such scenarios, Coverlink order financing is a great way to go.
Purchase order financing involves Coverlink Finance paying the supplier for goods that have been ordered to fulfill a job for a customer. This is an advance and may not be for the entire amount of the supplies, but it will cover a large portion of it. In some cases, companies can qualify for 100% financing.
It is pretty easy to qualify for and much easier than bank financing. Also, it does not require a company to have stellar credit. What is important is the creditworthiness of your company. If your company has a strong credit history, then purchase order financing is pretty easy.
Unlike bank financing lenders, our purchase order financing hinges mostly on the financial strength and creditworthiness of the company who has placed an order with a particular business, and not on the business itself. This makes it a viable option for new businesses and those with average credit..