Aerospace Purchase Order Financing, Aircraft Industry | Meridian PO

Aerospace and the airline industry is expected to grow exponentially over the next decade. This is evident by the growth in the airline industry, the unmanned aerial vehicles (UAV) and the increase the Department of Defense (DOD) has stated it will take in strengthening America’s military and global reach. As many analyst say, air superiority is key to the success of a conflict of war, international business commerce and the protection of the United States and its allies.

As a business taking action in the aerospace industry, your firm has the ability to take advantage of these changes by procuring Government contracts & funding it with aerospace purchase order financing. Some companies find it hard to compete in this industry, if they can’t meet the purchase order demand. For many small businesses, breaking out in this industry could be nearly impossible and highly discouraging. Don’t be discouraged however, below we highlight this industry’s growth and how Meridian PO Finance can provide a solution.

Aerospace and aircraft supply demand is surging and at a rate of 10.16% between 2016 to 2020, these are the estimated projection. Global commercial aircraft aftermarket parts are expected to increase at a rate of 5.81%. Although the demand is there, Government budget crunch can make getting in the game much more difficult for a small business. Meridian PO Finance focuses on diminishing these limitations to businesses.

Meridian PO Finance has:

• Financed the Aerospace/Airline Industry/sectors for over a decade
• Provided suppliers with credit protection for additional security
• Experience working with non-bankable clients & government agencies
• Provided entrepreneurs with friendly solutions to meet their needs
• Experience in slow paying customers & client concentration funding

Like many other businesses across the world, there are certain restraints that small business in the aerospace manufacturing, distribution and retail industries have to abide by. That is the reasonable expectations of cash flow availability and working capital that keeps your business running while providing the vital goods and services your buyers are seeking to purchase.

As a provider of manufactured aerospace parts – for example – whether for space exploration or everyday air travel. You are dealing with an industry that is very demanding in production cost and overhead. As a small or medium sized business, breaking into this industry or expanding in order to meet customer & industry demands, this can be a mountainous task to accomplish, more so without the proper financial backing. Luckily, aerospace is a very lucrative industry with many funding firms interested in taking a bigger piece of the aerospace pie. But what if you could meet your financial needs without the burden of debt?

Aerospace purchase order financing is one of the only few ways you can acquire this unique method of financing your purchase order obligations without incurring additional debt.

Financing your contractual obligations for the production of aircraft parts through purchase order funding will help increase cash flow and working capital by leveraging those purchase orders and converting them into cash you can use for production or wholesale of airplane parts.

Let’s say you are an airplane parts manufacturer, let’s say your business manufactures turbine engines for the airline industry. You have a large order for which you are lacking $10 million dollars in order to fulfill the contract. You don’t want the $10 million in your company’s books as debt waiting to be invoiced and paid off 30, 60 or even 90 days later. What do you do? In this case, it may be wise to pay a small fee to a purchase order financier who will assume your purchase order contract and provide you with the $10 million dollars you need to complete the order.

They collect on the funds, pay you back the balance minus their fees and you only have to do what you do best. Focus on meeting your customers needs and acquiring new customers. Aerospace purchase order financing can bring about a swift and easy solution to your financial budget crunch.