Real estate businesses can often run into cash crunch situations. Is your real estate enterprise in Arizona facing a similar situation? Are you frustrated by banks and other traditional lenders’ repeated rejection of your loan application? You can try an alternative approach.
A practical business funding in Arizona option for your real estate business is POF or Purchase Order Financing. It is a loan that finance services offer by taking the purchase order of your customers and treating them as collateral to provide cash advances.
As your real estate business grows or faces changes in demand, your need for funding may change. For a growing business, it is vital to have a cash flow that’s consistent and predictable. Not having the necessary working capital can make you lose many opportunities to grow and scale.
If you need funds quickly and have confirmed orders in the pipeline, they can become your tangible asset to raise those much-needed funds to meet the funding challenges.
What Is Purchase Order Financing?
A purchase order financing or loan helps close the gap between sale and payment. It is an excellent option as the loan is easier to obtain than a traditional bank loan. You can get approved quickly if your creditworthiness is established. Your credit rating, if not good enough, does not stand in the way of getting approval for a purchase order loan.
The Key Features Of A Purchase Order Funding:
- The purchase order financing can be approved within days instead of weeks or months, unlike traditional bank loans.
- You need not pledge your assets for collateral. The loan is secured by the receivables of your business through purchase orders.
- You are allowed to use your capital working for your business while using the purchase order funding to cover your immediate costs
- Purchase order financing allows your real estate business to accept more and larger orders and drive your business to growth and profitability.
The real estate industry often faces an uncertain financial situation because they are not sure when payments from their clients will come in. It usually puts them in a challenging situation which can become very stressful. With purchase order financing, you can get the capital you need to meet your regular and unexpected expenses and manage your business smoothly.
A Short Term Solution That Can Be Approved Quickly
While looking for an alternative funding service, make sure you choose a service provider who enjoys a good reputation in Arizona. You can find a reliable lender by searching online for ‘business funding near me’.
Regardless of the size of your business, purchase order financing can be the best way of solving your cash flow or business funding problem. Many real estate companies in Arizona have overcome their funding issues successfully in recent years.
Purchase Order funding is generally issued for the short term. You may find it a bit more expensive than traditional financing. Still, they are easier to get approved, and they can help you solve the immediate and urgent financial problems of your real estate business.
