TradeCap Partners has over 40 years of leadership and expertise in providing properly structured purchase order finance solutions to businesses.
Services we provide
Credit lines
$50,000 —
$15,000,000
Purchase Order Financing
Highland Park, Illinois
Gateway Trade Funding is an Illinois purchase order financing company that has been providing custom PO financing programs since 1995.
Services we provide
Credit lines
$25,000 —
$5,000,000
Houston, Texas
We are specialists in serving our clients’ needs with Invoice Factoring, Purchase Order Finance, Lines of Credit and Merchant Cash Advance Refinancing.
Services we provide
Credit lines
$25,000 —
$5,000,000
Dallas, Texas
King Trade Capital is a Dallas, TX purchase order finance company that has provided PO financing to US and Canadian businesses since 1993.
Services we provide
Credit lines
$100,000 —
$20,000,000
Danbury, Connecticut
Brookridge Funding is a Connecticut purchase order financing company that has been helping businesses across the US since 1995.
Services we provide
Credit lines
$100,000 —
$20,000,000
Learn more about...
Purchase Order Financing
Purchase order financing is ideal for resellers and contract manufacturers who don’t have the necessary funds to fill large customer PO’s. A purchase order finance company funds or guarantees payment to your manufacturer or supplier so you can purchase necessary inventory of goods or supplies.
Most PO finance companies will partner with an invoice factoring company to purchase your invoice upon the sale of goods to your customer. Sometimes, the PO finance company will handle both the PO financing and invoice factoring.
Due to its technical and risky nature, PO financing requires special expertise and a deep understanding of the risks involved with this unconventional type of financing. There are only a handful of companies that focus exclusively on PO financing.
PO financing rates vary between 2% and 5% based on a variety of factors including the reliability of your suppliers; your industry background and experience; the credit-worthiness of your customers; and the length of time it takes to complete the order. Invoice factoring rates are typically 2-3%, making the total cost of PO financing and factoring somewhere in the range of 4% to 8%.
How PO financing works:
- Submit your PO’s to the PO finance company (POFC).
- The POFC guarantees payment to your supplier.
- The finished goods are sold to your customer.
- The factoring company buys your invoice; pays the POFC for supplier costs and POF fees; and holds the remainder as a reserve.
- The POFC pays your supplier for the cost of goods.
- When the invoice is due, your customer pays the factoring company.
- The factoring company sends you the reserve, less factoring fees.
