With the federal government getting liberal with the laws governing the cannabis industry, manufacturers of cannabis products are looking at ways of meeting the surge in demand. If your cannabis business in Colorado is getting more orders than you can handle, you must act quickly and start looking for ways to upgrade your manufacturing facilities.
Getting more customers is the lifeline of any business. In the cannabis industry, the demand for CBD products is rising after the government has legalized specific formulations. If you want your cannabis business in Colorado to remain competitive, you must be prepared to handle the explosive growth the industry is about to witness.
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Purchase Order Financing – A Viable Funding Option
Obviously, you need funds to buy the additional machinery and equipment required to add more muscle to your manufacturing capabilities. You also have to add more skilled workers to handle the additional workload. With enough orders in the pipeline, the best way to raise funds to expand operations is to go for purchase order financing. Look for the best business funding in Colorado service to explore this option.
Like other cannabis business owners, your cannabis business in Colorado may also face some tough challenges. You will find it tough to overcome federal regulations restricting traditional funding services from financing the industry. Purchase order financing can help you circumvent these regulations and get the funding you need to fulfill the steady flow of orders.
How It Works
Purchase order financing in Colorado is an excellent funding solution for cannabis businesses with a shortage of funds to buy the inventory needed to fulfill orders. In this type of financing, the funding company will provide you funds based on your purchase orders received from buyers. The lending service will approve around 80 to 90 percent of the cost by considering various factors. They will collect the money from your buyer and send you the profits after deducting their fees.
Cannabis business Colorado with multiple orders but without the cash flow to purchase the necessary inventory or machinery to boost production can benefit immensely from purchase order financing. It is a simple and proven solution to ensure you don’t miss fulfilling orders and keep adding to your sales and profits.
Benefits of Purchase Order Financing
If you struggle to fund various critical activities of your rapidly growing cannabis business in Colorado, purchase order financing can help you manage your cash flow issues.
Easy Eligibility Terms
Purchase order financing is an easy option if you have many orders in hand. They can function as collateral to support the funding for business.
No Need For Personal Guarantee
Traditional business loans need a personal guarantee for approval. If you cannot pay off the loan within the term agreed, the lender can recover the same by taking control of your personal assets. Purchase order financing lends you money based on the value of your purchase orders. There is no need to risk your personal assets on this type of loan.
Flexibility
Purchase order financing is a flexible option. You can finance all your costs in one lump sum without having to worry about interest rates and installments. It is a transaction-based lending option without the hassle of long-term commitment.
Search online for business funding near me to locate a reliable and reputed purchase order financing service in Colorado.