Purchase Order Financing
What is Purchase Order Financing?
Purchase Order Finance or "PO Funding" can be one of the more difficult types of commercial finance to secure for fast growing businesses. Factors, however, routinely provide some amount of purchase order finance as "pre-ship" invoice financing. Traditional purchase order finance is provided through companies that specialize in that transaction. Our clients benefit from our established relationships with some of the largest providers of purchase order finance nationwide. While requirements and qualifications for purchase order finance will vary from lender to lender, some are relatively standard. To qualify for purchase order financing your business generally must:
• have an established factoring relationship.
• not be re-packaging or simply creating an inventory with the product.
• have an established and acceptable credit history.
• be funding orders of significant size ($100,000 and larger).
Purchase Orders for services to be performed, rather than goods to be delivered, are virtually never acceptable for typical purchase order funding. This type of finance is considered "contract finance" and is generally obtained through local commercial lenders such as banks or unique providers of such services. Purchase Order Finance is an extremely powerful tool for distributors, exporters, and importers purchasing or selling goods from the Europe, the Pacific Rim, and elsewhere. In some instances, international factoring transaction can provide the necessary financing bypassing the more complex area of purchase order finance. To discuss the availability of purchase order financing please call us right away.
-Expertise in Handling the Financing
-Quick Response to Captures Sales
-Create Additional Sales Opportunities
-Additional Working Capital
Who is Eligible for Purchase Order Financing?
We will consider funding companies with a good track record of producing goods. Your company may be young or a start-up, but your company management must have a proven track record. We will finance purchase orders for all types of transactions, including:
-U.S. Suppliers to U.S. Buyers
-U.S. Suppliers to Foreign Buyers
-Foreign Suppliers to U.S. Buyers
Every purchase order transaction stands on its own. We look at your business history, the credit worthiness of your buyer, the ability of your supplier to provide the goods, and if the transaction is profitable for all of the parties.