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Purchase Order Funding Examples

August 23, 2022
Phil Cohen
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Purchase order financing is a wonderful alternative funding solution for companies struggling with cash flow issues or for companies that need to fulfill orders, but don’t have the available capital to do so. However, it can be a little confusing to determine if your business qualifies for the service.

That’s why Factor Finders wanted to share some examples of real, completed purchase order funding examples to shine a light on all the different niches we can help sustain.

Purchase Order Funding Example 1:

The owner of a business who buys goods from a supplier and sells them to Amazon and other retail hubs contacted Factor Finders- they needed funds to get their product released from their supplier.

The owner told Factor Finders their orders total around $600,000 a month. Factor Finders was able to send this business to a trusted funding partner, who was able to draft up a contract and fulfill the initial funding request in under a month.

Purchase Order Funding Example 2:

A barbeque sauce company contacted Factor Finders looking for purchase order funding. The sauce is sold to many different retailers across the United States, invoicing around $30,000 worth of sauce each month.

This would normally be a quick process, but the owner had outstanding debt and less-than-perfect personal credit. With a little bit of time and some work from the purchase order funding company, the barbecue business was able to secure the capital needed to stock the shelves with their sauce.

Purchase Order Funding Example 3:

A reselling company that works strictly with government contracts needed purchase order financing to complete their latest awarded bid. Without funding, they wouldn’t be able to purchase the products needed to do what they were contracted to do.

This is a relatively common problem that purchase order financing can fix. After hitting a few roadblocks due to external issues, the reselling company signed with a factoring company and were able to get the capital they needed in a short period of time.  

Purchase Order Funding Example 4:

A company that supplies apparel, equipment, uniforms and gear for the military, police, firefighters and paramedics needed purchase order funding after signing a new contract for a larger sum than what they normally do per month. After contacting Factor Finders, the business was set up with a factor who worked with both the supplier and distributor to finance the proper invoices and provide proper funding in under a month.

Purchase Order Funding for Your Business

If your company is looking for purchase order financing and are not sure where to turn, let Factor Finders help. We work within a trusted partner network that ensures you get paired with a factoring company that is reliable, fairly priced and fits your business’ needs.

Not sure if your business qualifies for invoice factoring or purchase order financing?

We have funding specialists ready to answer your questions and work through a quote with you, free of charge. Don’t wonder if your business fits the bill… find out!

Ready to get started?

Read more:

What is Purchase Order Funding?

The Benefits of Purchase Order Financing

Extended Payment Terms During COVID-19

Purchase Order Funding During COVID-19

About the Author

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.

Learn more about Phil Cohen