After sluggish growth in March, April proved to be a much better month for the nation's employment situation, which could be a good sign for the future of the economy.
Should the positive jobs report trigger accelerated economic growth, wholesalers may begin fielding bigger orders. For small- to medium-sized businesses, a large order could be difficult to fill, but purchase order financing can be utilized to help them take advantage of such an opportunity.
In April, the economy added 165,000 jobs, with increases in employment in professional and business services, food services, retail trade and health care. This was higher than expectations, as ABC News reported economists predicted 153,000 new jobs.
The bump in job creation enabled the unemployment rate to fall slightly from 7.6 percent to 7.5 percent.
More people are entering the workforce as well – 210,000 people in April, which is another positive sign for the economy.
"There are some big takeaways here, one of the biggest being that as happens in healthy economies, the government lost some jobs and the private sector added jobs," JJ Kinahan, chief derivatives strategist at TDAmeritrade, told the news source.
As the economy shows positive signs of growth, wholesalers could see additional business. In some instances, they might even begin to see larger orders.
However, small- to medium-sized businesses can struggle to fill these orders on their own due to a lack of capital and resources. To be able to take advantage of a game-changing order from a big box retailer, wholesalers may want to consider purchase order financing.
This type of lending agreement allows a company to secure 100 percent of the funds needed to fill an order and helps them avoid having to sell part of their business.