Purchase Order (PO) Financing

Purchase Order (PO) Financing

Are you a product reseller and need capital to deliver a large purchase order? Purchase order financing can provide you with the working capital you need to deliver your large orders and grow your business.

Resellers face the constant dilemma of suppliers that want advance payments and clients who pay for your goods in 30 days or more. This problem can be solved with purchase order funding.

HOW DOES IT WORK?

PO financing covers the supplier expenses associated with a specific purchase order. It enables you to make sales that exceed your current financial capabilities and provides a solid platform for growth. When used properly, purchase order financing can help you grow your company by enabling you to accept larger orders.

PO financing is simple to use and integrates into your business easily. It works as follows:

  • Your client issues a purchase order to your company
  • We pay your vendor on your behalf, usually by letter of credit or bank wire
  • The goods are delivered and accepted by your customer
  • You send an invoice to the client
  • Your client pays the invoice and the transaction is settled

QUALIFICATION

  • You must have a minimum of $50,000 in monthly sales
  • Your company must buy finished goods from a 3rd party and resell them
  • If your company develops products, you must used an outsourced (3rd party) manufacturing company
  • You must sell products/goods to other companies or the Government
  • Transactions must have a minimum profit margin of 20%

BENEFITS

  • PO funding can help you take large order and close big sales
  • Available to established companies and startups
  • Purchase order funding can provide up to 100% of the financing necessary to pay your local or foreign suppliers
  • Grows with your sales
  • PO financing is easy to obtain and can be set up in days

Obtaining purchase order funding is faster and easier than obtaining traditional bank financing. The main requirements are that you run a profitable business and have purchase orders from reputable customers. The costs vary based on the size of the transaction, the credit quality of your client and the length of time that funds are needed.

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