The final months of 2013 proved to be a better-than-expected for the global manufacturing sector seeing month-after-month growth for the year. According a recent report by the J.P. Morgan Global Manufacturing PMI™, a composite index, December numbers were 53.3 up from 53.1 in November. Significantly, this pace of manufacturing output grew the fastest since February 2011, a sign that production is on the right track. Such consecutive growth also means that orders for products are being received at a regular, slowly increasing rate.
P.O. Funding Makes Manufacturing Financing More Accessible
In looking more closely at the numbers we can see the PMI or Purchasing Managers Index approaching 2005 numbers of about 54. This is a considerable improvement over 2008 numbers which dropped to 35. These numbers show that the manufacturing sector appears to be on the upswing that looks continue to improve through 2014, which benefits not only manufacturing companies themselves but also those responsible for financing manufacturing. The state of the PMI and manufacturing are good indicators of the overall health of the larger economy.
Manufacturing companies that are looking to boost production to meet this higher, sustained demand can turn to manufacturing factoring or purchase order financing for money. Such machine shop financing options allow a company to sell its existing invoices or purchase orders (POs) for immediate cash. It can often take too long to sit around and wait for those POs to come through. With P.O. financing, companies can get the money they need right away to ramp up production, purchase new machinery, or hire more workers.
Obtaining Manufacturing Loans via Banks Takes Time
Companies that choose manufacturing factoring don’t have to miss out on a seasonal or unexpected opportunity because they lack the necessary cash. By selling their POs or invoices to purchase order financing companies, they can get the cash in less than 48 hours. This manufacturing factoring or PO funding is more common today than it was years ago because corporate banks take are taking much longer to lend manufacturing loans and loans in general.
Or call us anytime 24/7 at 800-672-3844.
Se Habla Español