Your worst business nightmare just become a reality – you have an order and contract! Ok now what though? Just how can Canadian business survive financing adversity whenever your firm is not able to typically finance large new orders and continuing growth?
The reply is P O factoring and the opportunity to access inventory financing lenders when you really need them! Let us take a look at real life types of how our clients achieve business financing success, getting the kind of financing have to acquire new orders and also the products to satisfy them.
Here is your best answer – call your banker and tell him you’ll need immediate bulge financing that quadruples your present financing needs, as you have to fulfill new large orders. Ok… we’ll give you a chance to pick yourself up from the chair and prevent laughing.
All joking aside…everyone knows that almost all medium and small sized corporations in Canada can’t connect to the business credit they have to solve the dilemma of obtaining and financing inventory to satisfy customer demand.
Same with all lost – certainly not. You have access to purchase order financing through independent finance firms in Canada – you need to simply acquire some assistance in navigating the minefield who, how, where, so when.
Large new orders challenge what you can do to fulfill them depending on how your small business is financed. This is exactly why P O factoring is really a most likely solution. It is a transaction solution that may be once or ongoing, enabling you to finance purchase orders for big or sudden sales possibilities. Funds are utilized to finance the price of buying or manufacturing inventory until you will get product and invoice your customers.
Are inventory financing lenders the right solution for each firm. No financing ever is, but generally it can get you the money flow and dealing capital you’ll need.
P O factoring is an extremely standalone and defined process. Let us examine how it operates and just how you can engage in it.
The important thing facets of this type of financing really are a clean defined purchase order out of your customer who should be a credit worthy type customer. P O Factoring can be achieved together with your Canadian customers, U.S. customers, or foreign customers.
PO financing has your supplier being compensated ahead of time for that product you’ll need. The inventory and receivable which comes from that transaction are collateralized through the finance firm. Whenever your invoice is generated the invoice is financed, therefore clearing the transaction. So you’ve basically had your inventory compensated for, billed your products, so when your customer pays, the transaction is closed.
P O factoring and inventory financing in Canada is really a more costly type of financing. You have to demonstrate you have solid gross margins which will absorb yet another 2-3% monthly of financing cost. In case your cost structure enables you to achieve that and you’ve got good marketable product and good orders you are an ideal candidate for p o factoring from inventory financing lenders in Canada.