How Purchase Order Loans Can Help Your Business

1. How Purchase Order Loans Can Help Your Business by: www.newhorizon.org

2. Obtaining a big order from an existing or potential client often means great things for your company, however it may also mean huge costs. If you don’t have the funds required to buy supplies and produce, purchase order loans will help you get the capital that you need.

3. What Is Purchase Order Loans? Purchase order loans is a kind of short-term loan that is specifically designed to support companies obtain the funds that they need to meet order placed when they don’t have sufficient cash flow to cover expenses. With this type of arrangement, a lender extends a loan equivalent to the amount required to fill an order and makes use of the purchase order as guarantee for the loan.

4. How Purchase Order Loan Works? You get the purchase order from your client that wants to buy an item from you. You figure out how much it will cost you to fill the order, how much you have available to pay the expenses and how much you'll want to loan to make up the difference. You apply for loan and if approved, you sign a contract and agree to utilize the purchase order as guarantee for the loan. You will get the sum of money that you are approved for as a lump sum. As soon as the client has paid you for the filled order, you have to pay back the full loan right away plus interest you owe and any charges that are evaluated by the lender. ● ● ● ● ●

5. FOR MORE INFORMATION READ http://www.newhorizon.org/credit-info/how-purchase-order-financing-can- help-improve-your-business LOOKING FOR PURCHASE ORDER FINANCING? APPLY HERE http://www. newhorizon.org/NHBS/purchaseorder.htm