It can be great news when you receive big orders for your business. These orders can really put your business on the map and be a perfect start for expanding. However, it can be challenging when you don’t have the proper funds to fulfill the order. This puts you in a bit of a pickle. Here’s what to do if that happens.

Fulfill the Order

You should not turn the order away for two reasons. First of all, you will be hurting your business’ income, but second of all, it can be unfortunate for your reputation. Your reputation is crucial as a business owner, and word spreads fast. You need to do whatever it takes to fulfill the order.

You can do several things to ensure the order is filled. Most of these include finance options, and the one that likely best fits this scenario is purchase order financing.

Consider Purchase Order Financing

Purchasing order financing is one of the ways you can secure the funds you need. This gives you the funds you need to buy the materials that are required for the purchase. Because you want to take advantage of the opportunity to fulfill this large order and make a sale, this option is a great way to ensure the order gets fulfilled.

Purchase order financing is a relatively simple process. You will typically get approved quickly, and then the funds are sent. It will usually be between 80-90 percent of the total material cost. Once the order is complete, the invoice will be sent to the customer, and they will repay the lender. After the lender deducts the fees that were agreed upon, you receive the rest of the money.

The great thing about this is that there is no long-term commitment. With a loan, you may be stuck paying the bank back for months or years, but this transaction finishes as soon as the customer pays for their items. This means that you don’t have to worry about a prolonged payment schedule.

When you have issues with your cash flow or simply receive an order too big to fulfill on your own, purchase order financing can be a great way to secure the funds you need. Consider this when you receive your next big order to fulfill the order, keep the customer happy, boost your reputation, and receive a hefty paycheck when all is said and done.