You've secured the order. But do you have the funding to fulfil it?

Don't let a lack of working capital cost you your next big order!

Securing a large purchase order from a customer is a great achievement for any SME. But what happens when you have the order, the opportunity to grow, but not enough cash available to fulfil it? This week's #TuesdayTip digs deeper into Purchase Order finance and how it can make a difference.

What should SMEs know about PO Finance?

SME's need to secure stock - Access funding to purchase the goods or raw materials needed to fulfil a confirmed customer order.

Take on bigger opportunities - You don't necessarily have to turn down a large order because your available working capital is limited.

Keep operations moving - Avoid putting pressure on your everyday cash flow while trying to fulfil new orders.

Grow your business - Build capacity to service larger customers and pursue new contracts.

The bigger picture:

PO Finance allows qualifying businesses to access funding to cover the costs associated with fulfilling confirmed customer orders, helping them take advantage of opportunities without having to rely entirely on their existing working capital.

Real-world scenario:

Imagine a Durban-based manufacturer receives a confirmed R750,000 order from a national retailer but needs R400,000 upfront for raw materials and production. With limited working capital, fulfilling the order could put pressure on its everyday operations. By exploring PO Finance, the business could access funding to help cover these costs, fulfil the order and settle the finance once the retailer pays. Instead of turning down a valuable opportunity, the manufacturer can use funding to support growth and secure future business.

Key to remember:

Having a confirmed order is only half the opportunity. Having the financial capacity to fulfil it can be what takes your business to the next level.Don't let limited working capital stand between your business and its next growth opportunity.