What is Purchase Order Financing?
With purchase order financing, the factoring company issues a cash advance for goods that have been ordered, but not yet delivered. The funding obtained can be used to cover supplies and other costs associated with manufacturing, shipping, etc. Purchase order financing is an alternative funding option for those in the wholesale or distribution industry.
Accept Large Orders & Grow Your Business with PO Financing
You don’t have to turn down new opportunities. If cash flow problems are crushing your ability to take on larger contracts, purchase order financing (also known as purchase order factoring) can help. Get the funds you need to fill customer orders when cash gets tight.
Is Purchase Order Financing Right for Your Business?
- Are your sales growing so fast that your current funding is inadequate?
- Does your business struggle with reduced capital during busy times?
- Is your available capital earmarked to fund other areas of your business?
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Complete the form below to get a quick online quote.
How Does Purchase Order Financing Work?
Your company supplies written purchase orders for specific items ordered by customers and the factoring company will authorize funding on up to 100 percent of the transactions. Purchase order financing transforms your purchase orders into cash receivables.
Will My Company Qualify for PO Financing?
We have been instrumental in helping multiple industries finance their purchase orders, including government contracts, wholesale distributors, industrial, manufacturing, importers, exporters, drop ship orders, and direct ship orders. However, we do have a few guidelines for eligibility:
Minimum gross profit for transactions must be at least 20%
Having worked with and conducted similar business with comparable clients
First transaction of no less than $100,000
You must provide qualified purchase orders or letters of credit
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Purchase Order Financing Can Help Your Business Thrive
We have been instrumental in helping multiple industries finance their purchase orders, including government contracts, wholesale distributors, industrial, manufacturing, importers, exporters, drop ship orders, and direct ship orders.
Purchase order financing can open up new avenues to allow your business to thrive. Factor Finders has helped companies finance the following with qualified purchase orders:
- Letters of Guarantee
- Capital equipment
- Letters of Credit
- Project-specific labor
- Raw Materials
- Direct Manufacturing
- Finished Goods
Why Use Purchase Order Financing?
Purchase order financing can be extremely advantageous to customers who need to fulfill orders, but don’t have the cash up front to do it. Other advantages are:
- Qualifying is easy, even if you’ve been turned down in the past by a traditional funding source.
- Your credit doesn’t matter – your factoring company is only concerned with the credit of the company ultimately paying for the purchase order.
- Opportunity for growth! If your business is growing so quickly that you can’t keep up, PO financing will allow you steady cash flow so that you are able to handle new and incoming orders.
- PO Financing is NOT a loan – it simply advances you the cash that you would have eventually received from your invoice. This allows your company to create goods without having to wait for other clients to pay their bills, so you have working capital to proceed.
The Factor Finders Difference
We have decades of experience with purchase order factoring. We’ve spent years cultivating relationships with factoring companies that specialize in PO financing. Helping small businesses grow is our goal and greatest reward. We work with each business by getting to know essential elements of your business, as well as what you’re looking for before matching you with a reputable factoring company within our worldwide network.