​These options all have their place, but there are better options if you need access to working capital fast to cover payroll or fulfill a big order.

How to Select the Best Purchase Order Financing Partner for Your Business

Securing purchase order (PO) financing can significantly enhance your business's ability to fulfill large orders and manage cash flow effectively. However, selecting the right PO financing provider is crucial to ensure a beneficial partnership. Here are key factors to consider:

1. Industry Expertise and Reputation

Choose a provider with a proven track record in your specific industry. An experienced provider will understand your sector's unique challenges and requirements, enabling them to offer tailored solutions that align with your business needs. 

2. Transparent Terms and Fees

It's essential to work with a financing provider that provides clear and upfront information about its terms and fees. Transparency helps you understand the cost structure and avoid hidden charges that could impact profitability. 

3. Flexibility and Customer Support

A reliable PO financing partner should offer flexible financing options that can adapt to your business's evolving needs. Additionally, responsive customer support is vital for promptly addressing any concerns and maintaining smooth operations. 


If you need further guidance on selecting the right PO financing provider to improve your business's financial health, we can help. Reach out for personalized assistance.

​

​It’s the most wonderful time of year, a time of joy, family, and giving. 

You have worked hard all year and should enjoy time with loved ones over the holidays, bearing in mind that a new year awaits. A new year is a chance to rebuild, expand, and increase profits and efficiency. 

Here are some steps to take as you are setting business goals for the new year.

1. Review your past year of business
2. Cast your vision for your business
3. Set SMART goals
4. Involve your team
5. Clearly define actionable steps
6. Create a plan for monitoring progress
7. Plan to celebrate victories (big and small)

Step 1: Review
Review is a necessary part of growth, small and medium-sized business owners need to reflect on the past year and determine what worked well, what didn’t, and what they might want to change for the future. It’s also important to consider any changes in your market or industry, new trends, or opportunities. 

Step 2: Cast vision
Every year is a chance to bring you closer to reaching your long-term goals for your business. Understanding where you are in those long-term goals helps you cast vision for yearly goals and growth. Be sure you communicate with your team, financial partners, and clients any changes or exciting developments that lie ahead.

Step 3: SMART goals
When setting goals for the new year, the SMART goal framework is a great way to go about it. Business owners need to set goals that are: specific, measurable, achievable, relevant, and time-bound. Know what you want, what success looks like, how to get there, how it applies to your business this year, and when you want to reach those goals.

Step 4: Teamwork
Business owners need to involve their team when setting goals. Whether you have a team brainstorming session, or prepare your team’s expectations for the upcoming year, you cannot accomplish anything without them. Create buy-in, cast vision, and encourage your team for the year.

Step 5: Actionable steps
Business owners need to break down larger goals into smaller, actionable steps. This removes the daunting aspect of bigger goals and helps outline the path to success. Communicate the medium and smaller milestones to your team and the role they play in accomplishing them. Consider putting the list of these actionable steps in an accessible place where you and your team can review them often to stay on track.

Step 6: Monitor progress
Create a plan with or for your team on how you will monitor and review progress. As you go throughout the year, you may discover something working differently than expected, and changes are required. This is a normal part of business and shouldn’t be seen as a negative, but creating guidelines for review and revision ahead of time will make communication and changes efficient.

Step 7: Celebrate
Every good business owner knows maintaining morale is vital to progress and creates a healthy work environment. Plan ahead of time what milestones (big or small) you want to celebrate with your team/customers/supporters. This gives everyone something to look forward to and keeps the work environment encouraging and positive.

Whether you are looking to expand your business into new markets, increase profits, and more, setting your goals and expectations for your business at the start of a new year is the way to get there. Plan, set goals, engage your team, and know what your roadmap to success looks like.

From everyone at Prairie Business Credit: Happy Holidays! 

Looking to secure working capital for your business this upcoming year? We can help. Prairie Business Credit is a national working capital provider to young, growing, or recovering businesses. We offer accounts receivable financing, purchase order financing, and equipment financing. Our company serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and ensuring their success.

“No one who achieves success does so without acknowledging the help of others. The wise and confident acknowledge this help with gratitude.” —Alfred North Whitehead.
 
Every good business owner knows that people and relationships are their foundation—the people along the way who have been responsible for your education, encouragement, and support are what make your business possible. Parents/grandparents, mentors, teachers, friends, customers, financial partners, staff/employees—they are why you are here.
 
In this season of thankfulness, it’s important to express appreciation for everyone who has been part of the journey.
 
Practical ways to express gratitude
Here are a few ways you can show your customers, employees, family, and friends how much you appreciate their support.
 
●      Sharing your appreciation publicly
●      Personal acknowledgements
●      Celebrating milestones
●      Rewards or ‘thank you’ gifts
 
Sharing your gratitude publicly is a great way to get the ‘thank you’ message out to a large group at once. You can do this on social media platforms or through community events. Use the opportunity to share the story of your business, acknowledge your supporters' contributions, and cast a vision for a bright future.
 
Personal acknowledgments can be as simple as a phone call/text, a card, or a heartfelt email. It’s not about the format, it’s about the message. Begin your messages by calling the recipient by name and show them how much you value them as an individual. Everyone needs to feel seen and valued; this will only increase the strength of the relationship you share with your supporters.
 
Who doesn’t love to celebrate? Milestones exist not only to give us a goal to reach but also a point to stop, reflect, and celebrate. Who better to celebrate milestones than those who took the journey with you? You can celebrate milestones with special events (virtual or in-person) and promotions, or share a peek into the magic behind the curtain that makes your business run. Remind your supporters what they have done to make your success possible and get them excited about the great things the future has in store.
 
Rewards or thank-you gifts could come in any form, from a fruit basket or coffee gift card for your employees to special discounts or exclusive access to new products or services for loyal customers. The size of the gift will vary but be sure your genuine gratitude shines through in your presentation of the thank-you gift.

​
We want to say thank you
After being in business for 30 years, Prairie Business Credit has learned the value of trust, relationship, and gratitude. Trevor Morgan started Prairie Business Credit in 1993 after 20 years of experience with regional banks and private finance companies. Dylan Morgan, Trevor's son, joined Prairie Business Credit in 2003 to continue in his father's footsteps by learning the family business. We consider all our employees to be part of the Prairie Business Credit family and are grateful for every person who has been a part of our journey to where we are now.
 
We consider our success defined by our clients’ success and we are proud to have served clients from coast to coast with the funding and advice they need to stabilize, succeed, and grow.
 
We know the value of hard work, mentorship, and personalized relationships with clients and partners. We are proud of our employees and clients. We are grateful to every teacher, mentor, family member, client, and employee who has gotten us this far.
 
From the Prairie Business Credit team: thank you.
 
Want to work with a company that provides capital and values their clients? We can help. Prairie Business Credit is a national working capital provider to young, growing, or recovering businesses. We offer accounts receivable financing, purchase order financing, and equipment financing. Our company serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and ensuring their success.

The final few months of the year are upon us, bringing with them beloved holidays, time with family, and some of the most dramatic changes in profit and expenses in the year.

Some businesses experience a spike in sales over the holidays, while others, like seasonally-based businesses such as gardening equipment suppliers, may need to tighten their belts for the winter. All businesses need to prepare for this season to manage additional expenses, fluctuating profits, or increased product demand.  Regardless of your industry, the key to thriving during the holiday or winter season is maintaining strong cash flow.

Six Ways to Maintain Cash Flow 
Here are six strategies to maintain cash flow and help your business thrive whether you are in a busy season or not.

1. Incentivize pre-sales and early payments
Incentivizing customers to buy sooner rather than later is one way to bring cash in ahead of time, enabling you to cover costs if you need additional inventory or staffing, or to cover expenses during your slow season.  

2. Stay on top of inventory management
Over- or under-stocking can lead to wasted time and money. By analyzing past sales data, business owners can better forecast demand, allowing for smarter and more precise ordering. This not only ensures that inventory aligns with customer needs but also supports effective cash flow management.​

3. Offer promotions and holiday deals
Preparing promotions for the holiday season can retain loyal customers and attract new ones, increasing your sales volume and improving your cash flow. This also creates a faster turnover of inventory which is also good for cash flow. 

4. Manage expenses and delay non-essentials
Reviewing expenses in advance and identifying non-essential items that can be postponed is a great way to maintain cash flow. This ensures you have more funds available to handle a sales spike or navigate a slow season.

5. Build a cash reserve
A cash reserve provides a reliable safety net for unexpected expenses. By steadily growing your reserve throughout the year, you can strategically use it to cover costs and expenses during periods of low cash flow. 

6. Consider short-term financing options
For business owners who may not have cash on hand or in reserves, short-term financing is a great option. Options such as a line of credit, a business credit card, or, for some businesses, purchase order financing or invoice factoring may be an option.

Purchase order financing is short-term financing that can help your business pay for the inventory needed to fulfill incoming customer orders. Invoice factoring is when a business sells its accounts receivable to an invoice factoring company. The factoring firm advances cash to your business and then collects on the outstanding invoices. The balance is paid to the factoring firm minus a service fee. Both are excellent options for business owners who need more immediate cash flow or are facing a spike in sales.

When looking for a purchase order or invoice factoring company, be sure you find a company that:

● Is attentive to detail. 
● Has a high rate of success among customers.
● Is efficient.

This is never more important than during the rush of holiday sales when speed, efficiency, and customer satisfaction help maintain cash flow.

The holiday/winter season can be a win for your business if you prepare well ahead of time and maintain your cash flow. Employing these strategies will help small- mid-sized businesses navigate the end of the year with confidence and begin the new year from a place of prosperity.

Looking to maintain cash flow for your small business during the holiday season? We can help. Prairie Business Credit is a national working capital provider to young, growing, or recovering businesses. We offer accounts receivable financing, purchase order financing, and equipment financing. Our company serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and ensuring their success.

Navigating financial partnerships, investments, and agreements is a regular part of being a small business owner; however, navigating these relationships well and finding partners you can trust can be challenging.

In this article, we will cover what to look for when seeking trustworthy capital providers for your business. 


Excellent communication
“Effective teamwork begins and ends with good communication.” —Mike Krzyzewski

Communication is key to success in any venture, but especially in business. From the first point of contact with a company, you should evaluate their communication.

• Did you leave the conversation feeling clear about what was discussed?
• Were you able to ask questions and get satisfactory answers?
• Did you feel heard?
• Did they follow up quickly after your initial meeting?

First impressions are important, a company that puts forth the effort to make a positive first impression is more likely to put that same effort into a business relationship. Since 1993, Prairie Business Credit has served as both a trusted financial resource and consultant to entrepreneurs, building strong relationships and focusing on helping each business succeed. 


A good reputation with their customers
“Character is like a tree and reputation like its shadow.” —Abraham Lincoln


Businesses with strong character cast a long shadow. When looking for a company to partner with, look for one that has an excellent reputation with their customers and is known for:

• Being honest and fair.
• Maintaining positive relationships.
• Showing an active interest in helping their customers grow and succeed.
• Understanding their customers’ unique needs and goals.

From its Chicago base, Prairie Business Credit has served clients from coast to coast with the funding and advice they need to stabilize, succeed, and grow.


Attention to detail
“It’s attention to detail that makes the difference between average and stunning.” —Francis Atterbury


Small business owners know that the secret to success and happy customers is to pay attention to the details. You spend hours of your life making sure the details of your business represent your passion for your work and the high quality you strive for. You want the same quality in a financial partnership. Look for someone who:

• Will take the time to understand your industry and customers.
• Always treat your customers with the same respect and excellence you do.
• Is focused on helping you reach your business goals. 

Prairie Business Credit is a privately run company, which means we are able to give you personal attention, unlike other large financial institutions. In our decades of business, we have helped over 70 percent of our clients progress to bank or self-financing.
​

You put your heart, soul, and dreams into your business. When looking for financing options, look for a company with the same values in good communication, quality reputation, and attention to detail that you have.

At Prairie Business Credit, we strive to put our customers first and help them reach their goals, and our customers are enjoying the results. 

Hear from our customers:

Boyd Miller, Wisconsin Thermoset Plastic, ​Milwaukee, WI, shared that his company faced a massive drop in sales and was unable to get help from the bank, which directed him to Prairie Business Credit. Miller said, “Prairie Business Credit helped us with capital for operations and they brought discipline to our invoicing, so collections went more smoothly. In 24 months, we were back on our feet. We’re on top of receivables and control our cash better. Prairie Business Credit are good people, honest, smart, and straightforward—they kept our doors open."

Joe Krippelz, Jake’s Inc. Precision Machining and Rebuilding, Aurora, IL, said that after the economic downturn, their bank relationship changed—they needed cash to meet their customers’ needs. He said, “We looked at a lot of lenders. Prairie Business Credit understood manufacturing and they understood our needs. They came up with flexible solutions that helped us with cash flow so we could take orders, even months out. We didn’t lose orders and they helped us manage receivables, so we stayed on top of past-due accounts. Prairie Business Credit supported us until we could get an SBA loan with a bank."

Looking for a trusted capital provider for your small business? We can help. Prairie Business Credit is a national working capital provider to young, growing, or recovering businesses. We offer accounts receivable financing, purchase order financing, and equipment financing. Our company serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and ensuring their success. 

​Sales spikes are something many businesses face—from startups to legacy businesses—but the less cash you have to work with, the harder it will be to face a dramatic increase in sales. Some companies make most of their money during these short but profitable seasons, so how can you take advantage of sales spikes when you have limited cash on hand?
 
This is where purchase order financing comes in.
 
What is purchase order financing?
Purchase order financing is short-term financing that can help your business pay for the inventory needed to fulfill incoming customer orders. In purchase order financing, a business receives an order from a customer, determines the costs, and applies for purchase order financing. If the business is approved, the purchase order financing company will pay the supplier for the order (or a percentage of the order, depending on the agreement), and the business will send an invoice to the customer and the purchase order financing company. The customer will pay the purchase order financing company, who will deduct their fees and then send the business the remainder of the funds.
 
Purchase order financing is helpful for businesses who want to:

• Expand their customer base.
• Improve their cash flow.
• Take advantage of seasonal spikes in sales.
• Grow their business.

 
How purchase order financing helps with sale spikes
Sale spikes are fairly predictable throughout the year as holidays and changes in the weather are closely related to consumers’ buying patterns. However, having enough working capital to meet the larger purchase orders is less predictable.
 
Back-to-school shopping creates an annual spike in sales as families purchase the necessary clothing and school supplies for their children’s upcoming school year. For example, a business that sells backpacks and lunch bags to retailers could face more incoming orders than they have the working capital to pay their suppliers for.
 
Instead of missing out on increased profits, the business can apply to a purchase order financing company, which will assess the deal largely based on the buyer’s credit (which is very helpful for newer startups that lack financial history). Since the purchase order financing company is providing the funds upfront to pay the suppliers, the business can fulfill more backpack and lunch bag orders more rapidly than with their working capital, taking advantage of the sale spike and building a great track record with their customers. Since purchase order financing is short-term, businesses can meet their financial needs without having to incur debt or enter a long-term partnership.
 
Look for the right purchase order financing company
When looking for a purchase order financing company, business owners want to look for a company that:

●Is attentive to detail. A purchase order financing company will handle transactions and communication with a business’s suppliers and customers, so look for someone who will do it well and not overlook important details or information that create frustration and poor customer experience.

●   Has a high rate of success among customers. Business owners don’t just want financing; they want to work with a partner who is invested in the success of their business and will foster trust and good communication. Look for a purchase order financing company that is well respected and positively reviewed by customers.\

●   Is efficient. The more quickly and smoothly sales go, the more profit a business can make and the more customers it can satisfy, which is particularly important during a sales spike.
 
Having less free capital to meet sales spikes does not need to keep your business from taking advantage of extra profits if you partner with a purchase order financing company to fulfill additional orders.
 
Looking for a purchase order financing company for your business? We can help. Prairie Business Credit is a national working capital provider to young, growing, or recovering businesses. We offer accounts receivable financing, purchase order financing, and equipment financing. Our company serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and ensuring their success.
 ​

The call for entrepreneurship has been heard by many—according to the Global Entrepreneurship Monitor, over 31 million Americans (16 percent) of the adult workforce are entrepreneurs. Some of the top reasons entrepreneurs list for choosing to step out on their own include: wanting to be their own boss, dissatisfaction with corporate America, and a desire to pursue their passions.

Whatever the reason for becoming one, all entrepreneurs face a long list of challenges, risks, and rewards—the need for funding a startup being at the top of the list.

In this article, we will cover several options for funding your startup, how they work, and which option is best for you. 

Credit cards
Credit cards are a great choice for startups as they require few qualifications or business history to apply for—all that most require is a good personal credit history. Many companies have attractive introductory offers and generous rewards (such as cashback or travel points). Credit cards can help you start spending quickly and facilitate day-to-day operations.

A credit card may be the right option for your startup if:

• You want financial flexibility.
• You need to get up and running quickly.
• You have an excellent personal credit history.

Line of credit with a CDFI
A line of credit with a community development financial institution (CDFI) can be an excellent choice for startups—CDFIs are private financial institutions created to provide funds to those left out of more traditional banking and investment options. The capital CDFIs offer is generally short-term and self-liquidating (fully amortizing loans), and the goal is to create financial self-sufficiency for underserved communities (rural and urban) to aid economic and community growth. 

A line of credit with a CDFI may be the right option for your startup if:

• You’ve been turned away by traditional banks.
• You or your business/startup are part of an underserved community.
• Your business will increase economic growth development for your community.

Home equity loan
For entrepreneurs who are also homeowners, tapping into home equity can be a viable option. A home equity loan (AKA a second mortgage) lets you access your home equity as a lump sum that can be used for business purposes with your home as collateral. Home equity loans can offer lower interest rates, larger loan amounts, and flexibility in how you use your funds. If you manage your home equity loan well, you can even improve your credit score.

A home equity loan may be the right option for your startup if:

• You want financial flexibility.
• You hope to improve your credit score.
• You need a lump sum to start your business.

Invoice factoring
Invoice factoring is a great option for startups and businesses that have not been running long enough to qualify for a traditional small business loan. When a business factors its invoices, it sells its accounts receivable to an invoice factoring company. The factoring firm advances cash to your business and then collects on the outstanding invoices. The balance is paid to the company less a service fee. Invoice factoring is used in a variety of scenarios and industries, from startup to high growth to recovery.

Invoice factoring may be the right option for your startup if:

• You have little to no business financial history.
• You want an option that does not require collateral.
• You need quick cash flow. 

Conclusion
There are multiple options to secure funding for your startup, the key is figuring out which one best suits your specific business and personal goals. Regardless of what option you choose, when looking for a funding institution or partner look for someone who will:

• Communicate well.
• Pay attention to the details.
• Work in line with your business goals.

Looking to secure capital for your business? Whether you are a new business, going through a rough financial season, or hoping to take advantage of an exciting growth opportunity, we can help.

Prairie Business Credit is a national working capital provider to young, growing, or recovering businesses. We offer accounts receivable financing, purchase order financing, and equipment financing. Our company serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and ensuring their success.

​