With the economy showing signs of recovery in the past couple months, economists have improved the forecast for the economy for the last half of 2013, which could lead business to pickup across numerous industries.
One sector that could benefit from accelerated growth is wholesale, as these companies could begin to see larger orders. For bigger businesses, this won't be an issue, but small- to medium-sized wholesalers could struggle to fill larger orders on their own. Luckily, purchase order financing is available to provide assistance.
According to economists surveyed by USA Today, political paralysis in Washington isn't going to stall further economic recovery as the year continues. The recovery is expected to accelerate whether or not a deal is reached between Congress and the White House on automatic federal budget cuts.
For example, Gross domestic product increased at an annual rate of 2.5 percent in the first quarter, according to the Bureau of Economic Analysis, and economists expect it to grow around 2 percent this quarter as well as the following one.
"There are some powerful positive forces to offset budget cuts," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics.
O'Sullivan believes higher home prices and stock prices have led to consumers spending more, while job gains could also increase spending.
Should the economy begin to see accelerated growth, wholesalers might need to turn to purchase order financing to handle additional business. Generally, smaller businesses don't have the available capital or resources to handle these types of orders on their own, but this type of lending agreement makes it possible.
Wholesalers are able to receive up to 100 percent of the funds needed to fill an order, which allows them to avoid having to sell any equity in their business.