A purchase order financing facility (USA only) combined with invoice factoring are essential financial tools that can help companies not only make their deals possible but also profitable. We service most industries, including apparel, fashion, and textile distribution, manufacturing, wholesale companies, and others.
Purchase order finance is a funding option for companies lacking the funds needed to fulfill their customer orders. The purchase order financing lender oversees funding and the fulfillment of orders at each step of the process, from manufacturing to shipping and the delivery of the order to your customer. Once your customer receives their order and an invoice is sent, the PO financing facility then transitions into an Accounts Receivable Factoring facility, which means the PO lender advances the amount of the order invoiced, so your company has immediate working capital rather than waiting to receive payment from your customer.
How does Purchase Order Financing work?
Once a company has obtained a valid purchase order from the client, the funding process can begin within a matter of days. The company you are doing business with must be of high credit quality. PO funding can allow companies to focus on sales and move forward without any concern about how they will obtain the next round of financing. The PO finance lender monitors the fulfillment of purchase orders from start to finish. This is beneficial because having the PO lender as a third-party verification of processes can ensure quality and mitigate risks throughout the manufacturing, shipping, and delivery processes.
Once your order is completed and delivered, you may not receive final payment from your customer for 30 to 90 days, and that’s when the factoring facility kicks in.
For more information, please submit this SHORT FORM. The affiliate office that handles your area will contact you shortly.
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