WHAT IS A BUSINESS LOAN?
Business loans come in all sorts of different shapes and sizes, but they typically have one thing in common-the need for working capital. These loans are ideal for companies who are unable to provide goods or services due to their lack of capital. If the demand for your product or service is there, you may benefit from a business loan.
Black Label Capital, LLC provides Purchase Order Financing to those businesses who purchase large amounts of material that are either resold or installed on a project. For example, if you own a roofing company and you win the bid on a large commercial project, you will need to purchase a significant amount of material. On projects like this, the project is typically being financed by a bank. The bank issues funds on a draw schedule after a successful inspection. That money can take weeks or months to trickle down to the subcontractor, who was forced to come out of pocket for the material and labor. Not all business owners can afford to sit on payments for that long. That's where we come in.
With Purchase Order Financing, BLC will purchase the materials for that subcontractor. Once the install is complete, the client or general contractor will remit payment to Black Label Capital, LLC. We then transfer that payment to the subcontractor after we subtract our fees.
Purchase Order Financing can be viewed as a short term loan (typically only a few months), where we handle the material purchase. This allows the contractor to have the confidence to bid on those larger commercial jobs they typically wouldn't bid on.