Is PO Financing Expensive?

I get this question all the time. Is PO Financing expensive? The answer is, of course, it depends. It depends mostly on your margins. If you are making 15% or less and your transaction time is long, then PO financing will be expensive - very expensive.

But if your margins are higher (say 20% or better!) and your transaction time is relatively short (90 days or less), then PO financing should be a cost-effective solution.

Especially if it leads to more business opportunities.

Some information:
1. Financing Your Government Contracts
2. Purchase Order Financing - A Tool To Finance Your Growing Orders
3. Invoice Discounting - A Tool To Finance Your Business
4. Using Receivable Factoring to Finance Your Company
5. Financing Your Staffing Agency