Small- to-medium sized wholesalers have many reasons why they may not be able to fill a large order, such as not having the available capital or manpower, but there might be a new threat to everyday business – cyberattacks.
When a wholesaler is unable to fill a large order, they could be missing out on a game-changing opportunity. Businesses that struggle to complete an order might want to look into purchase order financing.
An emerging risk that could inhibit a wholesaler's ability to fill an order is cybercrime. When attacked by a hacker, these businesses could have to use a tremendous amount of resources for defense and legalities, limiting their available capital.
According to a new report from Verizon, cybercriminals are increasingly targeting small businesses, as they see them as easy targets. Of the 621 data breach incidents recorded last year, nearly half occurred at companies with fewer than 1,000 employees and 193 at businesses with less than 100.
One of the main issues small businesses face when it comes to cyberattacks is the inability to have the proper defense.
"A typical small business doesn't have a 50-person IT department and every computer protected," Andrew Singer, director of Symantec's small business group, told CNNMoney. "They don't have the money for it."
If a small- to medium-sized wholesaler is a victim of a cyberattack that forces them to pass up on an order from a big box retailer, purchase order financing might want to be explored.
When a company gets an order larger than they are used to handling, this type of lending agreement allows them to receive 100 percent of the funds needed to complete the order. It can also help them avoid having to sell part of their business to obtain the funds to fill an order.