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Services: Purchase Order Financing

Purchase order (PO) financing can help if you are a wholesaler and have purchase orders that you cannot fulfill because you lack funds. Unlike traditional bank financing, PO financing is easy to qualify for and can be set up quickly.

Our program can provide you with financing to pay your suppliers and fulfill large orders, enabling you to grow your company. We provide services in the US and in Canada.

We offer purchase order financing at competitive rates and can work in most industries. For an instant quote, fill out this form. To speak with an expert, call  us toll-free at (877) 300 3258.

Benefits

Our PO financing program has a number of benefits and advantages. However, the most important benefit is that you will be able to fulfill larger purchase orders and grow your business.

Your company will enjoy additional benefits. A PO financing line:

  • Is available to new companies/start-ups
  • Grows with your business and has no ceiling
  • Is transactional – use it only when you need it
  • Can be set up quickly, often in a week or two
  • Is easier to get than bank financing

How does purchase order financing work?

Transactions are fairly simple. Once you set up an account, we finance the supplier expense of your purchase order. We pay the supplier directly, on your behalf. Once they are paid, your supplier manufactures and delivers your product. The transaction settles when your client receives the goods and pays for them.

Purchase order financing is used in combination with factoring, which lowers your total transaction cost. For more information about how transactions are structured, read “How Does Purchase Order Funding Work?

Do you qualify?

To qualify for purchase order financing, your company must:

  1. Be a product re-seller/distributor
  2. Have commercial or government customers
  3. Have orders of $50,000 or more
  4. Have transactions with a gross profit margin of at least 20%
  5. Have orders withoutguaranteed sale or consignment sale clause

For more information, read “Purchase Order Financing Qualification Requirements.

Costs

Rates are based on transaction parameters, including the credit quality of your clients, the reputation of your suppliers, the risk of the orders, and your experience fulfilling orders in your industry.

For an instant rate quote, fill out this form. To speak with an expert, call us toll-free at (877) 300 3258.

Is purchase order funding right for your company?

Our  solution may be able to help your company grow and handle more orders if the following apply to you:

  1. You buy finished goods from your suppliers
  2. You resell the goods to corporate or government clients
  3. Your gross profit margins exceed 20%
  4. You need funding to cover supplier expenses
  5. You have experience in your industry

To learn if we are the right solution for you and to get a quote, fill out this form or call us toll-free at (877) 300 3258.

How to evaluate PO finance companies

Many companies offer purchase order financing – usually as an add-on solution to existing customers. However, few companies specialize in PO financing and have the technical knowledge to work with complex situations.

Given the importance of using this solution to the success of your company, evaluate each provider carefully. Consider asking the following questions:

  1. How long have you been in business?
  2. How is the company funded?
  3. What percentage of your portfolio consists of purchase order financing?
  4. What supplier payment methods do you support?
  5. How does the due diligence process work?
  6. Are there any due diligence fees?
  7. Do you have any minimums?
  8. What is the smallest transaction you can finance?
  9. What is the largest transaction you can finance?
  10. What is the term of the contract?

For more information, read “How to Select the Right Purchase Order Financing Company.

Want to learn more?

Are you looking for a purchase order financing company? We want you to make an informed decision. To help you, we maintain numerous articles in our resource center and in our blog. Popular articles include:

Video

This video explains how purchase order financing works in more detail.