Purchase Order Financing – A Great Way To Grow A Small Business

I wanted to grow my distributor network but didn’t know how! Let me rephrase that - I knew what I had to do, but I didn't have the money for it. I had been speaking to several large stores and had convinced them to stock our products (I import and distribute an exclusive range of candy and health drinks) – it was a big win for my sales team. But we were stumped as our funding application to the bank was turned down, and we just didn't have the capital to order the additional inventory and cover the initial expenses.

Of course, I instantly turned to alternative financing companies, and some research brought me to purchase order financing deals with a New York located lender called Cresthill Capital. It turned out to be precisely the right funding option for my distributorship.

What is Purchase order financing?

This is when you get a cash advanced against a purchase order to finance your manufacturing or business operations. In many cases, your lender works directly with your supplier to pay the amount to them and raises an invoice to your buyer for the full amount. The lender collects the payment, and the balance is paid to you after deducting the applicable fees and the cost of funding. The details and terms of the deal can differ depending on the lender.

How PO financing helped my business grow?

I was running in circles looking for capital to put down a payment for extra inventory to service my new clients. It was a huge opportunity for me to expand into new states, and I could only make it work with some help from Crest Hill Capital.

They were fast – even though PO financing usually takes some time compared to other alt-fin offers such as a merchant cash advance, it was still super quick compared to any lending offer from a bank! I have no Crest Hill Capital complaints when it comes to speed – they were ready to wire the money just 2 business days after my supplier sent their quotation and filled in the paperwork. Throughout this time, their team worked proactively with us all to expedite the process, handle the paperwork, and keep terms clear.

It allowed me to meet larger customer demands – Naturally, opening up new clients allowed me to take my business to the next level. To make that leap, I needed that initial credit push. With this help from Cresthill Capital, I started the loop of larger revenue and more significant profits, and now that the money is circulating in the company I can go it alone and keep up the growth momentum.

I received substantial funding without a stellar credit score – The beauty of PO financing is that you don’t even need a good credit score or perfect financials. The creditworthiness of the company placing the order matters more! We have to show that we have the capability to fulfill the order – which in our case was never in doubt due to the strength of our supply chain. Because PO financing is low risk (for both lenders and clients), it comes at very good rates and terms.

Does my situation sound familiar? Are you in the same boat? Yes? Then it is time to dial up Cresthill Capital and enquire about a Purchase Order financing offer. For companies on an upward growth trajectory, struggling to find the cash to grow – they provide fantastic funding offers to meet the business's specific needs.