There is no denying that we are currently in a healthy economy. People and businesses are making larger purchases, and entrepreneurs are jumping on growth opportunities. Albany, NY businesses of all sizes are also achieving rapid growth, but are eschewing old-fashioned financing methods to reach their big milestones.
Traditional Loans & Growth Don’t Mix
For the longest time, businesses in the Albany area have used loans to achieve growth. About a decade ago, during the Great Recession, Albany, NY businesses started to rethink the traditional funding model. Taking on debt to achieve growth seemed counter-intuitive. Debt and impacting business credit ratings limit growth potential and can prevent businesses from gaining momentum in a fast economy. Additionally, no one can accurately predict economic cycles, and the last thing a business wants in a depressed economy is lingering debt. To find a solution, businesses in the Capital District started looking beyond traditional lending channels.
Growth without Debt
Albany, NY businesses are taking on large and unexpected orders without debt-based financing. By using purchase order financing – or PO financing – local businesses receive an advance of debt-free capital to cover production on large orders without placing a strain on regular business operations. When the customer pays the balance owed, the amount of financing is deducted, and the business receives the remainder as revenue. The larger the order, the more revenue, and small businesses can quickly amass the capital needed to achieve growth, without placing liabilities on the books. Purchase order financing is also renewable, meaning if simultaneous or consecutive large orders come through the door, they can be financed quickly, instead of trying to navigate the red tape of the traditional lending process.
Albany, NY Businesses Use PO Financing
Purchase order financing is not just for manufacturers. Distributors, importers, construction companies, tech installers, transportation companies, and more use PO financing to court larger client accounts without placing a strain on resources and finances. In the current economic upswing, using PO financing makes more sense for growth-focused businesses in the Albany area. Eliminating the reliance on debt-based financing allows Albany, NY businesses to achieve rapid growth and gain momentum which will carry them for the long run.
Durham Commercial Capital provides purchase order financing and growth solutions to businesses throughout Albany, NY. If your business is positioning itself for growth, and you need a debt-free solution to get a stronger foothold in the marketplace, contact the experts at Durham Commercial Capital today.