Purchase Order Financing
Are your financing options limited by bankers who move at a glacial pace? You just found out that you landed a huge customer and they are writing a purchase order and you need financing. Will your bank help you? Purchase order financing is designed to provide you with the working capital you need to deliver your important orders and grow your business.
Importers and distributors face the constant dilemma of suppliers that want to be paid at the time of delivery. On the other hand you have clients who demand terms and paying for your goods in 30 days or more. Unless your company has access to bank financing, this will eventually lead to significant challenges as your company depletes its working capital. The solution to this problem is to use accounts receivable financing in conjunction with purchase order funding (also known as po funding).
Want an instant purchase order finance quote? Click here to get a customer service representative to call you now! Have questions or cannot wait? Call (509) 991-0245.
PO financing provides you with a financial partner that will pay your suppliers and allow you to fulfill your orders. It enables you to make sales that otherwise would exceed your current financial capabilities, providing a solid platform for growth. When used properly, purchase order funding can help you grow your company exponentially, by enabling you to accept more a larger volume of orders, and thus increasing sales.
PO Funding has a number of benefits:
- PO funding can help you close big sales. It empowers you with the confidence to go after big accounts and not worry about sacrificing your core business.
- Established companies or startups are eligible for trade finance.
- Purchase order funding can provide up to 100% of the financing necessary to pay your local or foreign suppliers
- It helps grow your company sales exponentially without having to sell equity.
- PO financing is easy to obtain and can be set up in days
- Purchase order financing is an ideal tool for importers / traders.
PO financing is simple to use and integrates into your business easily. It works as follows:
- Client issues a purchase order to your company
- Purchase Order Company agrees to pay your supplier on your behalf using a letter of credit, supplier guarantee or documents for payment
- The goods are delivered and accepted by your customer
- You send an invoice to the client
- Your client pays the invoice and the transaction is settled
Obtaining purchase order funding is faster and easier than obtaining traditional bank financing. The main requirements are that you run a profitable business and that you have purchase orders for goods from reputable customers. That management is experience and can deliver on their promises. The costs vary based on the size of the transaction, the credit quality of your client and the length of time that funds are needed.
Would you like to learn more about purchase order financing? You can get more information at the Purchase Order Funding Hotline or by calling us at (509) 991 0245.