If funds are tight, companies might encounter difficulty placing orders for inventory and materials for services. Cash flow issues can create a chain reaction that sends a business into windfall—especially if clients and customers are unable to rely on expedient service. While there are various options for accessing capital, there is a specific solution to this problem with purchase order financing. RJ Funding Services, also known as Rafter J Funding, offers financial support for purchase order financing.
What is Purchase Order Financing?
In simple terms, purchase order financing involves our firm, RJ Funding Services paying your purchasing invoices to suppliers for materials and goods that are necessary to perform a job or service to a customer. Essentially, paying for supplies through purchase order financing is an advance that may cover some or all of their cost. Our firm will collect the funds for service from the customer and after taking out a fair fee for our advance, the money will be dispersed to the business owner.
What are the benefits of Purchase Order Financing?
Compared to traditional lending, which tends to be unpredictable and slow, purchase order (PO) financing offers some distinct advantages to business owners strapped for cash. First, receiving a PO financing advance is relatively easier and quicker than with traditional business loans because the funds are dispersed based on the credit score and financial strength of the customer not the business owner. Moreover, PO financing means that businesses can use the advance to fulfill larger orders than they may not otherwise be able to afford. Lastly, purchase order advancement is not considered a loan from an accounting perspective.
How can RJ Funding Services help?
RJ Funding Services works with a network of affiliate lenders who specialize in dispersing non-traditional funding. Our firm will help you determine what types of alternative funding solutions meet your needs and handle the application process. RJ Funding Services works with businesses of all sizes throughout the United States and Canada. For more information about purchase order financing or our other services, call us at (325) 942-8685.