Tackling Large Holiday Orders
Hi there,
As we enter the holiday season, your business may be picking up more work than usual. If a customer places an unusually large order at the end of the year, it could be both a blessing and a curse. You don't want to turn down the business, but you may not have enough cash to cover the supply expenses. What do you do?
Don't lose the faith of your customers by refusing the order. Purchase order financing is a short term funding option that can help your business complete the order and tide you over until the customer pays. Here's a quick explanation of how the process works:
After you receive a purchase order from your customer, you send your supplier's proforma invoice to the lender. The lender then advances a portion of the purchase order value to your supplier. Once the order is completed, the invoice goes to both your customer and the lender. The lender will collect the full payment from your customer and then pay you the remaining balance minus advance and fees.
We go into more detail on the purchase order financing process (plus advantages and disadvantages) on this page - check it out!
We don't want your business to have to pass on large orders this holiday season. At Factor Funding, we do our best to support small business and give them the boost they need to grow and reach end of the year goals. If you have any questions about purchase order financing and how it could work for your business, reach out to us today.
Best of luck,
Daniel Eke
Factor Funding Co.
