In the business-to-business (B2B) marketplace, maintaining positive client relationships and retaining customers can create a foundation for future financial success. B2B companies must maintain stable supply chains and engage in proactive contract management activities to stay competitive in this constantly changing marketplace. Delivering on contractual obligations is the key to building a positive corporate reputation in the B2B marketplace. If your B2B company occasionally experiences operating cash shortfalls or requires added capital to meet its contracts or to expand your business into new territories or new product areas, purchase order (PO) funding may be a viable solution for your cash flow management needs.
If your B2B company has an established client list with standing orders or recurring orders that amount to a significant percentage of your overall business, PO financing can provide you with added financial resources by tapping the value of current purchase orders to fulfill orders and provide operating capital for your company. PO funding uses the financial value of your purchase orders as collateral for loans and lines of credit that can boost your purchasing power and optimize your supply chain. These asset-based loans are a convenient and effective way to manage large-scale inventory purchases and can help your company acquire added cash for expansion and growth even if you have exhausted your traditional bank lending resources.
To qualify for PO funding options, your B2B company must meet a few simple criteria:
Your company must have been in operation for at least one full year and be a U.S.-based firm
You must have an established client base that consistently produces orders for your B2B company
Your initial loan amount must be for $100,000 or more
You must present sufficient purchase orders to serve as collateral for your loan amount
Your company must retain at least 25 percent profits from the purchase orders
If your business can meet these initial requirements, Commerce Commercial Credit can evaluate your application and provide you with a fast decision on purchase order lines of credit or loans.
At Commerce Commercial Credit, we specialize in rapid responses to business lending applications. We can combine PO funding requests with other asset-based lending solutions to provide your B2B company with a comprehensive financial portfolio that can boost your purchasing power, allow greater optimization of your current supply chain arrangements and increase your ability to deliver on your contractual obligations in the competitive B2B marketplace.