When that “golden ticket” moment arrives—with a contract vastly larger than anything previously undertaken—how can contractors finance the upfront costs without draining their cash flow? In this episode, we explain purchase order financing, offering clear insights specifically tailored for contractors and manufacturers.
For instance, a $100K contract may require covering 70–80% in material, labor, and packaging costs before invoicing begins. This gap in the revenue cycle—from the moment a purchase order is secured until payment is received—can cripple growth if there isn’t a solid financing strategy in place. Scott explains how PO financing provides access to essential funds exactly when needed while only costing a few percentage points of the contractor’s margin.
Key episode insights also include:
🔹Defining the revenue cycle from contract award to invoicing
🔹Emphasizing the importance of funding work-in-progress—not just finished goods
🔹Tailoring financing solutions to specific cash flow needs
If contractors are ready to convert big opportunities into actionable projects without tying up their cash, this episode is a must-watch.
Subscribe, share your thoughts in the comments, and dive in!
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#purchaseorderfinancing #construction #casflow
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