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points out his company is an Out-
door Industry Association member.
“Companies need to be focused
on the parts of their businesses
they do really well. That includes
product innovation, brand build-
ing, marketing and sales. Purchase
order funding allows a company to
stay within their core businesses
competencies while knowing their
production and delivery costs will
be paid for. It’s a way to do what
you’re good at and not give up
your ownership.”
Purchase order funding isn’t
new, but according to a story in
Entrepreneur
, lenders say inter-
est in PO loans began to increase
after regulations on bank lending
tightened during the Great Re-
cession. Before 2010, there were
only a few active purchase order
lending companies operating na-
tionwide, but as the economy re-
bounded and conventional banks
got stingier, the option became
a go-to for companies looking
for help in financing through a
growth stage.
Now, more companies in the
outdoor industry are opting in.
“PO funding does not come
from basing our decision to lend
money on a manufacturer’s credit
score,” said Post. “Purchase or-
der funding looks very closely at
the transaction being financed
and who is paying the purchase
order when those goods are de-
livered. Because of that there is
no one-size-fits-all solution. It’s
really a unique, customizable
lending program that works well
with the size and kind of compa-
nies that make up the guts of the
outdoor industry.”
Mallett said he’s heard of larg-
er companies using purchase order
financing, particularly those whose
sales are seasonal, like so many
mainstays of the outdoor industry.
“The sweet spot, I think, is
those younger companies that
are still growing,” Mallett said.
“The balance sheet may not be
in the best shape, and the banks
aren’t real interested. In that
case, PO funding really is a
great alternative.”
Extend the Day
™
Summer
2016
|
Inside
Outdoor
39