Since the end of the recession, the economy has been a mixed bag, with some believing it is improving and others who think it is still on shaky ground. However, small business owners are split relatively down the middle.
In times of uncertainty, wholesalers could struggle to fill orders larger than usual, as having too much capital tied up in one area could be a major risk. With that said, businesses who receive such an order could opt for purchase order financing.
According to U.S. Bank's Small Business Annual Survey, 43 percent of small business owners said the economy is still in a recession and 45 percent said it is recovering. Meanwhile, just 1 percent believe the economy is expanding at a healthy rate.
"Last year, 70 percent of our respondents said they believed the economy was in recession, so even though we asked the question a little different this year, it's clear that small business owners feel a little better about current economic conditions than they did in 2012," said John Elmore, vice chairman of community banking and branch delivery at U.S. Bank.
Elmore added that there remains uncertainty about the federal budget, unemployment and taxes, which could be holding down small business owner confidence. Should those conditions improve, he said the sector "is ready to soar."
However, the National Federation of Independent Business reported a 1.3 point decline in small business optimism in March.
Currently, there is a lot of uncertainty about the future of the economy among small business owners, which could lead some to have an inability to fill large orders. However, purchase order financing can be utilized in situations such as these, as it allows companies to receive 100 percent of the funds needed to fill an order.