Today Accountant

Purchase Order Financing

Purchase Order Financing is nothing more than short term financing used by companies to pay their suppliers for a product or products that have been ordered by credit worthy customer, either a commercial company or a government entity. If you have a Purchase Order or Purchase Orders that you cannot fulfill because of cash flow constraints or lack of capital, PO Funding may be the answer. As well, if you have the ability to secure larger orders but have not done so, we may be able to finance your Purchase Orders.

Purchase Order Funding

Purchase Order Funding is actually very simple. Purchase Order Funding can take place in as little as 3 business days. Transaction Size: Today Accountant will consider Purchase Order advances as low as $10,000.  Our sweet spot is $250,000 to $500,000, however we have advanced much larger Purchase Order transactions up to $25 million.

The Basics of PO Funding:

  • You present us with a valid Purchase Order issued to your company.
  • You present to us the name of your supplier.
  • We verify the credit worthiness of your supplier and the customer who issued the P.O.
  • Assuming your customer and vendor are credit worthy we will move toward entering an agreement wherein we fund your Purchase Order.
  • When the order is received by your customer you invoice for the delivered product.
  • Your customer will be required to remit payment directly to us or a third party such as Receivable Finance Company or Factor.
  • Once the payment is received, your profit is released to you less financing fees.

Purchase Order Finance

While a bank looks at your company’s finances, we look at the financial statements of your customers. Some of your suppliers demand cash on delivery while your customer wants to pay you net 30 to 60 days. Meanwhile, your cost of goods sold all have to be paid. Our purchase order finance facility exists to make your deals both possible and profitable.


Example: You have a confirmed order from a creditworthy customer but lack the cash to fulfill it.


We can advance you up to 100% of your confirmed purchase order inventory costs to your supplier. We will either pay your supplier directly or open a credit line or letter of credit. You notify us of delivered finished goods and we invoice your customer. We then collect the invoice payment from your customer. From the funds collected we retain our fees, the amounts paid to your supplier(s) and pay you your profits!


This Purchase Order Finance facility can complement an Account Receivable Funding facility.

The types of companies that typically benefit from purchase order financing include:

  • Manufacturers, Wholesalers, Distributors, Sole Source Contractors
  • Suppliers and re-sellers to Government Agencies
  • Importers and Exporters
  • Minority, Women, Veteran, and Disabled Veteran owned businesses
  • Companies that have been turned down for traditional bank financing
  • Profitable companies that have had their lines of credit and Asset Based Loan facilities decreased by banks

Stop passing up larger orders. Stop passing up the opportunity to grow and to make more profit. Speak with us and let’s see if we can put our resources to work for you. Our services also include Receivable Financing and Invoice Financing.

 

Just because you have been turned down by another bank should not stop you from speaking to us....

Receive Purchase Order Financing Today!