When a business is looking to buy supplies or fill a large order for a customer they may not have the cash on hand. There is help for a small business so they do not have to turn down this order. Purchase Order Financing is a type of funding that will allow the business to finance the money need to fill a large order for a customer or fill many smaller orders for a group of customers.
There are companies that will provide purchase order financing. They will pay the supplier for the goods and services that are needed to fill that order for a small business. They can cover a large portion of the financing if not all of it. The small business will then receive an invoice from the finance company. When they get paid by the customer the finance company will take out money for their supplies and a small fee and the small business will receive the rest of the money for their order.
Purchase order financing will allow a company to fill any order they get. They will not have to turn away customers due to lack of cash flow and they will even be able to continue to grow and to expand.