While a business strives to get the necessary finance for its projects at hand, it has a plethora of options to choose from. Every option has its pros and cons to accompany and the business needs a good consideration while weighing all its options available. Getting a loan might seem a good option to keep the equity intact and not diluting the ownership but it is not easy to get. Along with this, a company cannot expect to get the complete amount of loan applied for rather a part of it.
At this point in time, financing a purchase order can be the best option to pick. Here are a few benefits of getting to a Purchase Order Financing Company over other options.
Easy to qualify: Compared to a bank loan, these are easy to qualify with lesser restrictions and is for those who are having a hard time getting the loan approved. These lenders are more concerned about the payment history of your client rather than your company. It is an added advantage for the company.
No personal guarantee: This is an added advantage for the company as for a loan, the bank needs a personal guarantee to cease the property in case of default in payments. In this case, it all rests with the customer and the lender absorbs the risk.
Great for startups: It is most beneficial for a startup as they have a low credit score to get a loan and find it hard to finance its functions. This proves to be a very valuable option for newly established companies in funding their projects.
So, if you are a newbie or have a purchase order in hand to start with but do not have the necessary finance, this is the option you should look for. In totality, getting in touch with a Purchase Order Financing Company is a better and feasible option than raising a loan. Think again before opting for your fundraising options.
No comments:
Post a Comment