Purchase Order Financing

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PO finance companies

2425 Matheson Blvd E, Mississauga, ON
237 W 37th, 5th Floor, New York, NY
1508 Plaza Encantada NW, Albuquerque, NM
600 Central Avenue, Suite 212, Highland Park, IL 60035

PO financing

Purchase order financing is ideal for distributors and wholesalers who have large purchase orders they can’t fill due to lack of funds. The PO finance company funds or guarantees payment to your manufacturer or supplier on your behalf so you fulfill the order for your customer. The customer invoices are typically handled as an invoice factoring transaction.

Purchase order financing companies pay your vendors and suppliers.

Invoice factoring usually occurs with purchase order financing. The PO finance company purchases your customer’s invoice, collects the invoice amount and sends you the remaining profit.

Purchase order financing companies often require that you have at least 20% gross profit margin in your order. Purchase orders must be noncancellable and have no consignment or guaranteed sale terms.

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.

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 special expertise.

Purchase Order Financing

After you receive the purchase order from your customer, you send the order to your PO finance company.

Your PO finance company will advance money or guarantee payment to your manufacturer or supplier to cover the cost of goods.

Once your customer takes possession of the goods, an invoice is sent to both your customer and your PO finance company.

The PO finance company will purchase the invoice and handle it as an invoice factoring transaction.

Your customer pays the PO finance company for the invoice and the PO finance company sends you the profit on the entire transaction.

Purchase order financing

Invoice factoring provides cash flow

Cash flow Solution

Purchase order financing is a financing option for companies that lack the funds needed to fulfill customer orders.

Invoice factoring provides receivables management

Fund Large Orders

Rather than turning away business, purchase order financing allows your company the flexibility to fund large orders.

Invoice factoring provides business credit services

Working Capital

Receive 100% financing on purchase orders and access working capital needed to grow your business at an unlimited pace.

Invoice financing has no loans or debt

Retain Equity

PO financing allows you to retain complete ownership without taking on debt or giving up valuable equity in your business.

Invoice financing is quick and easy

Quick And Easy

PO financing is often available within 5 to 10 business days and doesn’t require historical financials or spotless credit.

Invoice financing provides peace of mind

Peace of mind

PO financing provides business stability and allows you to keep your major customers happy. You don’t have to pass-up large orders.

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