What is Purchase Order Funding? | Meridian PO Finance

For industries, small businesses, and vendors who supply goods and services, purchase order funding can help fund business opportunities that traditional financing companies will not approve. As a business owner, utilizing purchase order financing means that you will have the ability to fulfill your sales orders—even those that exceed your daily norm.

There are a number of ways a business can benefit from PO finance. A reliable and quick way to bridge the gap between your existing resources and the resources needed to fulfill your contract, short-term financing with Meridian PO is an ideal way to ensure that your business continues to grow even in a weak economy.

• Profit. When your business receives a substantial order, it may not be able to promptly fill your customer’s needs. In these instances, your business could miss out on the potential profit the order presents. PO funding allows you to fulfill the orders you need promptly, resulting in more capital for you and your business.
• Payment. Purchase order funding typically pays for the cost of goods. This leaves your vital funds available to pay employees or any other immediate expenses you may have, resulting in an image of financial stability and the prompt delivery of goods.
• Fast. PO funding is a great solution when your cash flow reserves are dwindling because it provides you with quick capital. It does not show up as debt for your business and makes it possible for your business to receive approval for more forms of financing.

The professionals at Meridian PO Finance will be able to determine if your business will benefit from our short-term financing in the long run. If your business has received a solid order, but does not have the money to fulfill it, our PO funding may be the most accessible and reliable way to get that capital. Often times, banks and commercial lenders are not willing or are unable to offer such funds without a lengthy and costly qualifying process. Our PO funding ensures that the qualification process is quick for companies that have a deadline to meet for their contract. Typically, the types of companies that benefit from our short-term financing solutions include government agency suppliers/re-sellers, HUBZone Contractors, manufacturers, wholesalers, and companies experiencing rapid growth.

Receiving funding through a bank may come with restrictions and delays, as well as unwelcome credit constraints. Financing through Meridian PO Finance provides your business with short-term financing that produces long-term benefits.

Meridian PO Finance is a mark above our competitors because we are able to provide your business with the capital to fulfill a current or future purchase order in an unbeatable and efficient manner. In fact, pre-approvals can be available within 24 hours and funds can be ready for access in as little as 3 days. Quick cash results in more productivity for your business, and that means a higher capital payoff in the end.

Contact Meridian PO Finance today we’ll help you access purchase order funding that will help your business grow.

As a small business in the wholesale trade, you can tend to carry a very big burden and a large amount of risk to manage and sustain your business. Most wholesalers tend to provide their products up-front so that they may fulfill their purchase order contractual obligations. Even if you choose to take 50% of the up-front cost from your customers, that may not be enough. If your cost to operate and provide those goods is greater than the amount collected up front. You are still going to be at a loss until your invoice is paid.

In this case you really have two options, in one hand you can acquire a purchase order loan. In many instances, you can still get additional money back to your business when your customers pay their balance. If the financing fee is less than the total amount, the remaining funds get disbursed back to your business.

Your second option is to factor your invoices. This option is a very resourceful one for small businesses. After you’ve provided your goods to your buyer, you can factor the invoices owed to your business. If you’d like to learn more about invoice factoring, visit this page.

Historically, the number one manner in which companies would acquire the financing necessary for government contracts, would have been through conventional financing means. This is because a government contract from the United States is a very reliable piece of document for your businesses’ goods and services. Most bank were more than happy to fund your business or at least get you started with a letter of credit.

In the current climate, acquiring financing has become a difficult task for some businesses and especially for those who are considered small businesses. In many cases a government contract can be a very large order and your small business may not have the assets to get the first phase of the ground. With a purchase order financing limit of up to $10,000,000 for government contracts. You can focus on the details of the project and less on the burden on your business.

With our $10,000,000 limit for small business financing and a long-term relationship, you can count on our lending hand anytime you need financing in the present and in the future.