We hope the following questions and answers will provide you with an understanding of PO Funding, Trade Financing, Supply Chain Financing, Reverse and Non-Recourse Factoring; what they are, how they work, and how your company can begin this funding process to enhance your working capital and cash flow.
Please contact POfunding.com in confidence today to see how we can assist you with PO Funding plus Factoring Services.
Ready now? Here is our safe and secure funding application. Please complete the application, attach the requested files and hit the send button. It is that easy!
Questions about PO Funding plus Factoring
- What is Non-Recourse Factoring? Factoring is the purchase of valid Commercial Accounts Receivable [AR] for cash. Why do we mention factoring when you are looking for PO Financing? All deals work backward, which means you can have Invoice Factoring without PO Funding, but you cannot have PO Funding without Invoice Factoring. Remember that every deal starts with your creditworthy customer and a gross margin of 20%+.
- I thought PO funding & Invoice factoring was used only by companies in trouble? PO Funding plus Factoring gives your business the power to grow, without giving away equity or taking on debt. Contrary to what you may have heard, factoring is NOT a tool used only by struggling companies. Financially smart companies use PO funding plus Factoring as a powerful tool to release capital tied up in AR and use our monies to buy goods for you to fulfill purchase orders.
- How is PO Funding plus Factoring different from a loan, say from a bank? PO Funding plus Factoring is not a loan; it is the process of purchasing valid Commercial Accounts Receivable or AR [invoices] from your business at a small discount with the interim step of buying foods so you can fulfill a purchase order and create a valid invoice. Do I have to sign a Personal Guarantee? Because we Credit Protect you and include AR Management services in our fee, the real risk is your performance in meeting your customer’s needs and sadly, the occasional fraud. We ask that you stand behind your work and be honest with us in all our dealings. This is why we ask for Personal Guarantees from your company’s ownership.
- Does my business qualify for PO Funding plus Factoring? Almost every business can qualify. Our guidelines are very simple: if you have a PO from a creditworthy business or government entity in the US. If you have AR, due to a sale in a business to business transaction, you may qualify. Any size invoice can be funded, provided the service you offer, or the product you sell has been completed and delivered.
- How will my customers know where to send payment for PO’s you have funded and the following invoices to be Factored? Your customer will be notified to pay us directly. When invoices are factored they will be stamped with the address to send payment to prior to being mailed to your customer. Your company should never deposit invoice checks that were already purchased by a factor.
- Will my company be eligible for PO & Accounts Receivable Funding if it has a bank loan or line of credit? If a bank has a lien or UCC filing on your company’s inventory, PO’s and accounts receivable, you should let us know right away. We will ask the bank to subordinate that lien. Some banks will accommodate the request and others may decline depending on your circumstances. Our number one referrals come from loan officers willing to help out the client in cash flow needs. They are very familiar with this kind of interim financing. The other alternative is to pay off the loan if there are plenty of receivables to leverage the buyout.
- How can I be certain that your company will treat my customers well? The last thing we want is for you to lose a customer. We are not a collection agency. We will never harass your customers for money. Maintaining your customers’ goodwill and confidence are of utmost importance to us. With our famous soft touch, you and your client will the enjoy the professional relationship with our seasoned people.
