Purchase order funding is short term financing that provides up to 80% of your costs to fill orders from creditworthy customers. If you are reselling or distributing a finished product we can provide 80% of your costs to fill the order. Some suppliers want you to pay cash on delivery whilst your customer wants to pay you net 30 to 60 days. Meanwhile, labor, packaging and shipping cost all have to be met. Our Purchase Order Funding services exist to make your deals not only possible, but profitable.

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

We can advance up to 80% of the confirmed purchase cost to your supplier. We pay your supplier or open a letter of credit. You deliver the goods and we invoice your customer. We collect the invoice payment from your customer and pay you the balance between the order value and the amount paid to your supplier, minus our fees and cost of money used, once payment has been received.

This Purchase Order Funding Product can complement an Account Receivable Factoring product as well.

You want additional funding to finance single or multiple transactions with creditworthy customers:

Then our Account Receivable Factoring product is the best solution. You deliver the goods to your customer obtaining proof of delivery and acceptance of the goods. You invoice us for the goods at an agreed discount and we advance you up to 93% of the value of your invoice. We invoice your buyer for the full amount and collect payment according to your agreed terms. We pay you the balance less our administration fees and cost of money used, once payment has been received.

What are the benefits of purchase order funding?

If your suppliers require payment in advance of shipping or do not provide you with payment terms that are adequate to meet your needs to fill orders, we can make advance payments to them or provide Letters of Credit supporting your payment obligation
If banks are unwilling to provide working capital to fill orders, we can still do so regardless of how long you have been in business or your current financial condition. We look primarily to the creditworthiness of your customer
If you have large purchase orders that cannot be filled through your normal cash flow, we can provide funding to fill the orders.
Through letters of credit, we can work with overseas suppliers and customers.

Who typically qualifies for purchase order funding?

Companies that drop ship products from suppliers to creditworthy customers
Companies that need a minimum of $100,000 in financing
Companies that are distributors or resellers of finished goods
Companies with gross profit margins greater than 10%