As the U.S. economy picks up steam, small- and medium-sized manufacturers and wholesalers across the country could reap the benefits. In fact, theses businesses could begin to see orders larger than usually handled.
While this can present a great opportunity for growth, smaller companies don't often have the resources to take on big orders. For this reason, manufacturers and wholesalers may have to turn to purchase order financing.
One sign that the economy is growing was revealed through a recent Federal Reserve survey that showed all of the Fed's 12 regional banking districts reported modest to moderate growth from July through late August, the Washington Post reported. Two of the driving forces behind growth were increased consumer spending and steady job growth.
August proved to be another solid month for the employment situation, as the U.S. economy added 169,000 new jobs, according to the U.S. Department of Labor. While this figure was lower than the 180,000 projected by economists Bloomberg surveyed, the unemployment rate fell from 7.4 to 7.3 percent.
With the economy gaining momentum, small- and medium-sized manufacturers and wholesalers might want to prepare for a pick up in business. Should this come in the form of large orders, financial assistance may be needed.
Potential game-changing orders from big-box retailers such as Target and Walmart can present great opportunities for growth, but businesses may not have the available resources to handle them. As a result, manufacturers and wholesalers could turn to a bank for a loan, but limited available capital or poor credit could prevent approval.
Fortunately, purchase order financing is available, and gives companies up to 100 percent of the funds needed to fill an order. Being able to secure this type of financing also allows owners to retain full equity.