Purchase Order 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.
This program is especially designed for product distributors and resellers. It provides the working capital they need to cover the supplier payment associated with a large purchase order, allowing them to fulfil large orders. The program is available in the USA and in Canada.
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To qualify for this program, your company must meet the following requirements:
- You must have a minimum of $50,000 in monthly sales
- Your company must buy finished goods from a 3rd party and resell them without modification
- 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%
How does it work?
PO financing can be deployed by most companies that meet the qualification requirements and integrates with your existing business relatively 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
- PO funding can help you take larger orders and close big sales
- Can provide up to 100% of the financing necessary to pay your local or foreign suppliers
- Grows with your sales
- 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 orders from creditworthy 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.
Learn more. Purchase order finance resources:
- Do I qualify for purchase order financing?
- Purchase order finance basics
- Purchase order funding as a tool to finance wholesalers and distributors
- Advantages of PO financing
- Understanding po funding
- Anatomy of a purchase order financing transaction
- Financing your import business with purchase order funding