It appears as though the economy might finally be pulling itself out of the lull it has been in since the Great Recession, with workers' attitudes toward the jobs market and overall economy reaching pre-recession levels.
Should the economy grow at a faster rate in the near future, business could pickup across many industries, including wholesale.
As a result, these companies might begin to see larger orders, some of which they may not be able to handle on their own. To be able to take advantage of these large-sized orders, small- to medium-sized wholesalers can turn to purchase order financing.
American workers' attitudes improved markedly in April, as the outlook on macroeconomic conditions, which measure worker sentiment in the strength of the economy and availability of jobs, hit a post-recession high of 46.8 points, according to the Randstad Employee Confidence Index. This is a major improvement from five years ago, when the outlook on macroeconomic conditions was at just 20.9.
"We are continuing to see a renewed sense of optimism across the U.S. workforce," said Jim Link, managing director at Randstad US. "The data reveals employees are feeling an increased sense of security about their own jobs, and the economy as a whole, despite relative global economy uncertainty."
If economic growth leads to additional business at U.S. wholesalers, the need for purchase order financing could increase. Smaller companies generally are unable to fill large orders without help, due to limited available capital and resources, but passing on such an opportunity would be bad for business.
Small- to medium-sized wholesalers can receive assistance from purchase order financing, as this lending agreement allows them to obtain 100 percent of the funds needed to fill an order, and avoid having to sell equity in their company.