PO Financing

Inventory Financing vs. Purchase Order Financing

Both purchase order (PO) financing and inventory financing can be used to finance certain types inventory. However, both solutions work very differently and serve very different business objectives. From this article you will learn: What purchase order financing is What inventory financing is The main differences between these solutions How to determine which solution is right for […]

How Does Purchase Order Financing Work? A Sample Transaction

In this article, we review how a purchase order transaction is structured and settled. This review should give you a good understanding of how this solution works and help you determine if it’s the right way to finance your company. What is purchase order financing? Purchase order (PO) financing – a financial solution that can […]

Why Do Purchase Order Finance Transactions Require Inspections?

Most purchase order finance companies typically require that the goods they are financing be inspected by an independent company prior to shipment. Usually, the inspection company verifies that the quality, quantity, shipment date, and other parameters meet the specifications of the purchase order. The inspection clause is usually written into the language of the letter […]

Why Must Purchase Order Finance Transactions Use Factoring?

Most purchase order (PO) finance companies usually ask that the client use factoring financing to settle a transaction. The transaction starts by using purchase order funding; however, once the goods are delivered and an invoice is generated, the finance company will ask that you factor the invoice and close the PO funding line. This request […]

What is Purchase Order Financing?

Getting a large order can be a blessing – or a curse – for a product wholesaler. If your company can afford to buy goods from a supplier and wait until the client pays, you will certainly benefit from fulfilling the order. On the other hand, if your company does not have sufficient funds, you will […]

Financing Your Import Business with Purchase Order Financing

Managing the cash flow of an import company can be challenging for a small or mid-sized company. While import companies can be profitable and have high gross margins, they require a substantial cash reserve to operate. And you need an even bigger cash reserve if your company is growing or taking larger orders. You need this […]