Providing Working Capital through Purchase Order Financing
Unlike invoice factoring which accelerates the cash from your invoices, PO Factoring or Purchase Order Financing gives you the ability to have goods available for your clients from your sources before an invoice is generated. You will also hear the terms Vendor Guarantees, Supplier Financing, Accounts Payable Financing, Trade Financing, Letters of Credits or PO Funding to describe this type of working capital arrangement.
Benefits of Purchase Order Financing
- Fund 100% of the cost of your inventory
- A Purchase Order Financing is not a loan
- PO Funding Pays Your Suppliers or gives them Payment Guarantees
- PO Financing allows you to take on bigger orders
- Based on YOUR Client’s Credit Worthiness
- Balance Sheet Issues?
- Bank Line Too Small?
- Hyper Growth?
- Need a Defacto Credit Department (Credit Protection)?
If you are a product importer, reseller or distributor, and need capital to deliver a large purchase order, then purchase order financing can be a solution to fuel your business with the cash you need to deliver your orders and grow your business. PO financing enables you to make sales that exceed your current financial capabilities. You can also visit out our sister AR financing company.