Purchase Order
Financing Companies

Search Factoring Companies
Applied Capital is an Albuquerque factoring company that provides a variety of financing products including accounts receivable factoring.
1508 Plaza Encantada NW, Albuquerque, NM
505-342-1840
BridgingFactor is a Toronto factoring company with expertise in invoice financing and lending that offers flexible factoring solutions.
2020 Winston Park Drive, Oakville, ON, Canada
416-644-6444
Brookridge Funding is a Connecticut purchase order financing company that has been helping businesses across the US since 1995.
26 Mill Plain Road, Danbury, CT
203-790-7301
Coral Capital Solutions is a New York City finance company that provides working capital solutions to small and mid-size businesses.
275 Madison Avenue, New York, NY
212-219-0159
King Trade Capital is a Dallas, TX purchase order finance company that has provided PO financing to US and Canadian businesses since 1993.
5954 Luther Lane, Dallas, TX
214-368-5100
Sallyport Commercial Finance is a Houston, TX factoring company that offers a full-range of working capital products for businesses.
14100 Southwest FWY, Houston, TX
832-939-9450

Purchase Order Financing

Purchase order financing companies pay your vendors and suppliers.
Purchase order financing companies pay your vendors and suppliers.

Purchase order financing is ideal for wholesalers, distributors and re-sellers who have purchase orders they can't fill because they lack funds. The PO finance company funds or guarantees (supplier guarantee) payment on your behalf to your supplier so you can ship goods to your customer. You invoice your customer; your customer sends payment to the PO finance company; then the PO finance company sends you the profit less fees.

Purchase order financing rates are based on the credit-worthiness of your customers, the reputation of your suppliers, the risk of the transactions, and your experience in the industry. Purchase order financing companies typically require that you have at least 20% gross profit margin in your product. Your purchase orders must be noncancellable and have no consignment or guaranteed sale terms.

Purchase order financing is always used with invoice factoring. Some PO finance companies require handling the invoice factoring as well as the PO funding. Some PO finance companies work with other factoring companies. Many factoring companies offer purchase order financing as an add-on service for clients that already factor with them. Due to its technical and risky nature, PO financing requires expertise.

P.O. Financing

1. You send your purchase order to your PO finance company.
2. The PO Financing company pays or guarantees payment to your supplier.
3. Your supplier delivers the goods or merchandise to your customer.
4. The PO finance company arranges factoring for your customer invoices .
5. Your customer sends payment to the factoring company.
6. The PO finance company sends you the profit less fees.
Invoice financing is a quick and easy process.

Guide to Factoring Receivables

Discover why invoice factoring can be better than bank financing, learn the receivables factoring process and factoring rate structures, know what to expect when applying for factoring services and much more.