I need funding.... Fast!

We pride ourselves of being able to move fast. As you can imagine though, speed is in the eye of the beholder. One thing that we find concerning is when we get a call from a client that needs funding in a week or two because they committed to an order that they can't deliver without funding.

Here is the typical scenario we see often. We get a call from a prospect saying they have a great opportunity. During the conversation, it becomes clear they have already made the sale and committed themselves to making a delivery. However - they can only perform if they get purchase order financing. And they need it fast! Within a week or two, because the clock is ticking..... Otherwise, they order falls through.

I consider this scenario very very risky. They have committed themselves without the certainty that they can perform. Many times, the end customer is not aware of this either. I suspect that many underwriters grit their teeth when they see this scenario and also wonder what other risks this company is taking......

A safer strategy is to try and get purchase order financing (or your other type of business financing) before you win the transaction. That puts you in a much better position to deal with any unexpected problems, such as delays.

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Looking for information on purchase order financing? Read the purchase order financing section of factoring articles, or the purchase order finance blog