COVID-19 has been stressful and challenging on many levels. In addition to health concerns, the economy has suffered greatly with many jobs lost and businesses shutting down or filing bankruptcy. With the slowdown in many industries and traditional lenders’ underwriting process becoming more stringent, many business owners have discovered the benefits of alternative financing such as invoice financing and purchase order financing.
Traditionally, importers and distributors of consumer goods & supplies selling to retailers were most often using purchase order financing to grow their businesses. In the new landscape, many retailers are requiring longer payment terms which only increases the need for companies selling to them to obtain short-term funding such as purchase order financing and accounts receivable factoring.