Mobilizing Funding

Some business owners are confused about securing funding for an upcoming job. The mistake is in assuming that a Purchase Order for a product or service will allow the vendor to pull out cash in order to perform on the contract. Using funds to get a contract up and going is called mobilization capital. Unfortunately P.O. funding companies will not offer mobilizing capital to start up a contract. P.O. financing is to guarantee a payment to a supplier. Purchase order financing is used when a product is made and shipped directly to the end user. In this scenario the PO funder only has to guarantee the payment to the supplier rather than a situation where the vendor has to assemble parts to create a product. Mobilization funding is only available to companies with some positive financial history, other assets available to pledge, and a excellent track record for fulfilling a purchase order.