PO Finance

How Do PO Finance Companies Pay Suppliers?

One of the most common reasons that companies look for purchase order financing is that they have a large purchase order and they need funds to pay their supplier. Suppliers usually ask for a down payment before fulfilling an order. Consequently, clients ask their purchase order finance companies to cover these down payments so the […]

Supplier Financing vs. Purchase Order Financing

Supply chain financing is a set of tools that companies use to improve their cash flow and their ability to run the business. It offers tools such as reverse factoring, supplier financing, and purchase order financing. Factoring and reverse factoring are post-delivery financing tools. As such, they can help only after you have delivered your […]

Using PO Financing with Asset Based Lending

Generally, companies don’t use purchase order financing as a stand-alone product. Instead, they combine it with another financing solution, such as factoring. The reason both products are used together is that combining them often reduces total transaction costs. These savings benefit the client and drop directly to the bottom line. The purchase order financing line is used to pay […]

Small Business Purchase Order Financing

One of the greatest challenges for small product wholesalers is getting an order that is too large for them. Large orders are only good if you have the financial resources to fulfill them. If you can’t fulfill them, you risk losing the order – and the customer – to a competitor. Being unable to handle […]

Government Purchase Order Financing

Selling products to the US government can be lucrative, especially for small business owners who qualify for the 8(a) program. This program offers a number of opportunities to companies that meet its criteria – usually small businesses, minority-owned businesses, and women-owned businesses. However, many small companies that get a government contract often lack the working capital to deliver it. […]

How Loans Against Purchase Orders Work

One of the main challenges for a company is getting a large purchase order but not having enough money to fulfill it. This scenario can be a problem for product re-sellers, wholesalers, and distributors that are growing too quickly. Business owners usually see this situation as a “good problem” to have. However, large orders are […]

How Purchase Order Financing Rates Work

Purchase order (PO) financing has been gaining popularity as a way to finance product re-sellers and wholesalers that have large purchase orders. The solution has a number of advantages and benefits, which makes it an effective way to finance growing companies that lack working capital. If you want to learn how PO financing works, please review our resource section. […]

How To Finance a Timber/Lumber Export Company

There is a large market opportunity for US and Canadian companies that export timber, usually as logs, to Europe and Asia. Although timber is a commodity, some types of wood – especially high-demand specialty hardwoods – can command high profit margins. The combination of high demand and decent profit margins makes these transactions very appealing. However, […]

How To Choose The Best Purchase Order Financing Company

The market is full of companies that advertise purchase order (PO) financing programs. However, only a few companies have the experience, knowledge, and capital to handle these transactions successfully. Choosing the right finance company is important because it plays a critical role in the outcome of your transaction. On the surface, most PO transactions appear […]

Why Guaranteed Sales Clauses Prevent You From Getting Purchase Order Financing

It’s not uncommon for us to speak to a prospect who is very excited about a large purchase order they just received from a very reputable company. Furthermore, as we review the details of the order, we believe that the order will be a good candidate for purchase order financing because it meets these three […]