After sluggish growth in the final quarter of 2012, the economy grew at a faster rate in the first three months of 2013.
With economic growth, wholesalers could begin to see larger orders than they are used to handling. While such an order could provide a good opportunity, small- to medium-sized businesses can struggle to fill bigger orders due to lack of capital and resources. Luckily, wholesalers unable to fill an order on their own could potentially turn to purchase order financing.
According to the Bureau of Economic Analysis, real gross domestic product increased at an annual rate of 2.5 percent in the first quarter of 2013, up from just 0.4 percent growth in the previous three-month period.
Chris Williamson, economist at Markit, told the Wall Street Journal this upturn in growth is a substantial improvement from the previous quarter. However, he also said first quarter growth could be overstated.
Even though it may have been exaggerated, Paul Ashworth, chief U.S. economist at Capital Economics, told Bloomberg it was still an impressive quarter as growth was challenged "by an almost unprecedented fiscal squeeze."
With the economy showing positive signs of growth, business could pick up at U.S. wholesales. Small- to medium-sized businesses might see larger orders than they usually handle, which can be difficult to fill for a variety of reasons.
Should a wholesaler not have the available capital or resources to fill a large order, purchase order financing could be utilized. This type of lending agreement allows a business to obtain 100 percent of the funds needed to fill an order, which can help them avoid having to sell off part of the company to take advantage of a game-changing opportunity.