Purchase order funding
See how much funding you're eligible for.
As an eCommerce small business owner, you must be fully aware of the unpredictable costs and the peaks in sales that can cause cash flow problems. The importance of placing purchase orders early to ensure you always have enough stock on hand is also nothing new. But there's a catch: to stock up you need funds that are not always at hand. But how do you balance your inventory needs with your available resources?
To get through tough times or to capitalise on peaks in demand, your business needs to access funds to ensure you can forward order enough stock. By retaining enough inventory on hand, you can ensure your operations run smoothly without causing any disruptions to the company's income flow, even when the unexpected happens.
Unfortunately, finding the right funding can be quite difficult for eCommerce stores, as you have to meet the rigid criteria of banks and other alternative lenders. For instance, to get a traditional loan for your eCommerce store, the purchase order financing company will require you to fill out a comprehensive application to determine your eligibility. Often, the process can take one to two weeks or even months, which is not feasible for the dynamic operations of digital retail.
Due to this, owners of growing eCommerce small businesses benefit greatly from Purchase Order Financing. Additionally, PO financing companies extend the option for digital stores to access working capital.
With purchase order financing, your store is granted the capital to pay the suppliers before invoicing the buyers. This way, you can easily resolve the problem of a tight cash flow as you can take advantage of the purchase order financing company to access liquidity and retain your cash flow for essential expenses such as ad spend, salaries, and other costs vital to scaling your store.
Bloom provides eCommerce stores with purchase order financing services. In contrast to traditional banks, getting purchase order financing from Bloom is a quick and convenient option. With Bloom, small businesses can protect their financial interest by swiftly accessing funds to guarantee supplies and satisfy demand.
Purchase order finance means that as an eCommerce business owner you will get cash to pay for inventory so that you can keep cash flowing to pay for the expenses you really need in order to scale. Any eCommerce company is likely to experience a pinch point as it grows, when they have a ton of sales and need to purchase the stock – often long before individual customers start paying for their orders. This can be a significant cost, and if you constantly have to pay for this out of your existing cash flow, it's just a matter of time before you can no longer afford to keep advertising and spending on other essential items that are mission-critical if you want your business to grow.
Let's look at what purchase order financing is, who can benefit from it, and how your business can use it to maximise your profits.
Table of contents
- Who is purchase order funding for?
- Is revenue-based financing best for your store?
- Why choose Bloom as your purchase order financing company?
- How to apply for purchase order financing with Bloom
- Apply for purchase order finance today
- Purchase order financing FAQ
Who is purchase order funding for?
Purchase order financing is beneficial for small businesses that sell their products online, especially for eCommerce stores with seasonal sale patterns. Additionally, if your company struggles to purchase materials or inventory required to fulfil orders, you can turn to a purchase order finance company.
If you have an eCommerce store, you are likely to experience an unexpected financial situation at some point. Say, your eCommerce store sells furniture. It's Black Friday, and your customers place a large number of orders. Limited financial resources may prevent you from fulfilling this demand, and your problems begin to snowball.
This is where Bloom comes in. With Bloom's purchase order finance service, you'll be able to finance a large purchase order with your supplier and fulfil your customer orders.
As a purchase order financing company, Bloom presents financing options to eCommerce stores. Even if your small business has a less-than-ideal credit score or limited financial history, you can still qualify for purchase order financing.
Purchase order financing from Bloom
Bloom is a financing company specialised on revenue-based finance. Our PO financing solutions allow eCommerce stores to eliminate the wait between orders and payments, and stock up in time. If you choose Bloom as your purchase order financing partner, you will receive the following benefits:
Flexible working capital – You can check your eligibility to get funding for small to large orders
Quick funding – You can start accepting payment in just fifteen minutes
Convenient pricing – Bloom provides PO financing at reasonable rates. Our plans start as low as 0.99% per transaction
No hidden charges – Our purchase order financing service lets you know about the cost in advance. So you will not be liable for any unexpected expenses along the way
Simplified experience – We offer a hassle-free approach to check your eligibility and get qualified for purchase order financing
Readily available customer service – You can reach out to our customer care representatives to learn more about the PO funding process
Numerous payment methods – Bloom has over 200 payment options to choose from
After you apply for purchase order financing, we will look at your credit history and the reputation of your suppliers. Our goal is to make your eCommerce store bloom, which is why we consider numerous factors to approve applications. Once your application is approved, we'll inform you about the different funding offers available.
How much do purchase order financing companies charge?
Purchase order financing costs can vary. At Bloom, our financing starts at a low rate of 0.99% + 0.15 p for each transaction. We provide you with straightforward prices, which means you don't have to worry about paying any hidden charges. We also offer a flexible repayment plan, allowing you to pay after your customer pays you.
The funding amount you receive will depend on the special requirements of your business. You can learn more about the cost by reaching out to our customer service representatives. Give us a call on +44 (0) 204 511 2443 and let our agents know about your requirements for purchase order financing. Our team will be happy to explain the purchase order financing rates.
Is revenue-based financing best for your store?
Small businesses can apply for short-term business inventory financing. If you're not ready to choose revenue-based financing, there are several options that a small business owner can take for purchase orders.
Let's explore the pros and cons of each option to find out the best choice for your eCommerce store.
Traditional lenders such as banks or private lending companies can grant these loans for small business owners. You repay the loan amount plus interest, usually in monthly amounts over a set period of time.
If you make timely payments, you can increase your credit score
Small and midsize businesses can easily procure a business loan
These loans have a low approval rate, as eCommerce stores have limited collateral with which to secure the loan.
These loans come at a risk, as businesses are required to make a monthly payment
The interest rates are typically high, especially for companies with a low credit score
The approval can take months, whereas it can take just one business day to get approval for funding that's tailored for purchase orders.
Who are business loans best for?
Businesses that don't require capital quickly can benefit from business loans. Additionally, if your financial state allows you to repay the loan promptly, you can use PO loans to boost your credit score.
Personal loans are cash advances that business owners can use to purchase inventory. Like business loans, personal loans are paid back in full with interest. However, some personal loans prevent business owners from using a cash advance for business purposes.
Getting approval for personal loans is relatively easy
Personal loans are quick. You can sometimes get approval on the same day
You may not be allowed to use the personal loan payment for your desired business use
Personal loans provide limited capital. Typically, the maximum amount provided is £30,000
Who are personal loans best for?
Personal loans are ideal for small businesses that need a quick financing solution for inventory purchases. However, before taking out a personal loan, make sure that the lending institution does not have any restrictions on the use of the loan.
Crowdfunding enables businesses to acquire capital by raising funds through platforms like GoFundMe, Crowdcube, and Seedrs. Companies can create a strategy to reach a large number of lenders to secure funding for their businesses.
Crowdfunding platforms don't consider your credit history, so it's easier to secure a loan
With crowdfunding, you can get financing for products that may not be appealing to traditional investors
Crowdfunding is unpredictable. There is a chance that you will not procure any funding
The approach requires a comprehensive digital marketing strategy to increase the visibility of your crowdfunding post
If you require instant working capital, this approach will not be a reliable option
Who is crowdfunding best for?
Crowdfunding is ideal if you have an eCommerce store and you wish to gain capital for a product that you're not in a hurry to launch. It can also be viable if your company has a poor credit history.
Revenue-based financing is ideal form of funding for purchase orders if you have a growing eCommerce store. It provides a quick advance payment that you can pay back as you generate revenue from customer orders.
Companies that offer PO financing, such as Bloom, equip you with the capital to get your products delivered on time. With this approach, you don't have to put up any collateral to secure purchase order funding.
No credit checks are required
Funding is provided on real-time business performance
Quick provision of funds, making it ideal for retail environments
It is only available for eCommerce stores and Software as a Service (SaaS) providers
Why choose Bloom as your purchase order financing company?
The competition in digital retail is growing each day. If you want to stand out, you need to have a competitive edge. You can stay ahead of your competitors by providing your customers with a wide range of products quickly and conveniently. Bloom can help you do just that.
Let's take a look at all the benefits of applying for purchase order financing through Bloom:
Complete equity – With Bloom, you can keep 100% of your equity. Our funding approaches don't require any personal guarantees or warrants. You don't have to worry about putting up collateral with our risk-free policy
Straightforward terms – We empower our customers to only pay for products they use
Variable repayment terms – We offer flexible payment terms. Bloom understands the difficulty of running a business. This is why we empower you to repay us after you've received payment from the customer
Swift service – We prides ourselves on providing quick service. With Bloom, you can apply for purchase order financing in minutes, get feedback on approval status within 24 hours, and receive funds quickly
How to apply for purchase order financing with Bloom
Finding the funds to quickly tackle large and urgent orders is not always easy if you're running an eCommerce store. Bloom extends a quick and straightforward purchase order financing process. Moreover, you can check your eligibility for the purchase order financing application by entering your details in our online form.
When you pass our preliminary checks, our teams will reach out to you directly to discuss the next steps. You can then submit your details, wait for approval, and get the purchase order finance.
Check your eligibility for purchase order financing from Bloom
We present finance on purchase orders in the UK to eCommerce businesses, subscription businesses, or Software as a Service (SaaS) providers
We traditionally provide purchase order finance to businesses earning a minimum monthly revenue of £10K
Our purchase order business finance solution is for companies that have been in business for at least one year
Apply for purchase order finance today
Bloom provides you with the financial resources to help accelerate the growth of your small business.
If you want to learn more about our purchase order financing, feel free to reach out to our on +44 (0) 204 511 2443
You can also apply for your purchase order funding by visiting our website. Check your eligibility and get approval for purchase order funding within minutes.
Purchase order financing FAQ
Is there a difference between purchase order funding and purchase order financing?
No, purchase order financing, and purchase order funding are interchangeable terms for the same service.
How quickly can I get purchase order financing with Bloom?
Depending on the nature of your business, the time taken to finance the purchase order can vary. However, once you apply, our representatives will reach out to you in under 24 hours to discuss further details.
I run a service-based business. Can I still get purchase order financing?
Bloom provides purchase order financing to eCommerce stores and Software as a Service (SaaS) companies to help your firm secure enough cash to meet customer demands. If your business falls in this category, you can apply for PO financing.
Can I reapply for purchase order financing if the product does well?
Of course! You'll already have an account with Bloom, which you can use to reapply for PO financing.
Will you do a credit check for PO financing approval?
Although we carry out credit checks, we also consider many other factors before making a decision. So, even if you have a poor credit history, Bloom can still provide you with PO finance solutions to help your business grow. However, we do prefer companies whose overall financial profile is reliable.
Who do I contact if my PO financing query is not answered?
If you have any additional questions or concerns regarding purchase order financing, you can reach out to our customer care agents by giving us a call on +44 204 579 4867
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