Purchase order financing can benefit businesses that need working capital to fulfill customer orders before receiving payment. In this introductory overview, we will define what purchase order financing is, explain how it works, and discuss the benefits of this type of funding.
Purchase order financing can provide necessary cash flow for contractors, staffers, security service providers, and other companies struggling with growth constraints. However, it also comes with risks if not properly managed. By understanding the mechanics and applications of purchase order financing, you can evaluate if it is an appropriate solution for your capital needs.