PO Finance

Factoring and Term Loans: A PO Financing Alternative

One of the greatest challenges for a small business is being able to fulfill large purchase orders. Small companies often lack the funds to pay suppliers and other expenses associated with large orders. Most companies try to use financing – when it is available – to solve this problem. One common option is purchase order […]

Guaranteed Sales And 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 […]

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 several opportunities to companies that meet its criteria – usually small businesses, minority-owned businesses, and women-owned businesses. Product contracts often have large values that exceed the financial capabilities of small government vendors. […]

How Loans Against Purchase Orders Work

Getting a large purchase order can be a great opportunity if the company has the funds to fulfill it. Unfortunately, small companies often miss these opportunities because they lack the funds to execute the transaction. In this article, we discuss a way to finance purchase orders. We cover the following: How are purchase orders financed? […]

How Purchase Order Financing Rates Work

Purchase order financing is commonly used by small companies that have won a large purchase order but don’t have the financial means to fulfill it. This article discusses the average costs of PO financing and how transactions are structured. This information will help you determine if PO financing is the right solution for you. The […]

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, […]