Benefits of purchase order funding
Purchase order funding is a financing option that allows you to accept purchase order, regardless of your current capital availability. It is an ideal tool for companies that have exhausted their available funds or bank options.
PO financing enables you to finance up to 100% of your supplier costs, allowing you to deliver more and bigger orders. Furthermore, po financing has not arbitrary limits like bank financing and is directly tied to your sales. This means that all you need to do to obtain additional financing is to obtain orders from solid commercial or government customers.
PO Funding is an ideal tool for companies that sell 3rd party products such as wholesalers, distributors and resellers and are growing quickly.
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How does PO funding work?
Purchase order funding is simple to use. And once the account is set up, you can use it to finance all current and subsequent orders. The process is very straightforward and works as follows:
- Your company is awarded a purchase order from a customer
- We issue a letter of credit (or similar instrument) favoring your suppliers
- Your supplier delivers the goods
- The order is delivered and accepted
- Your company issues an invoice to your client
- Your client pays the invoice
- The transaction is settled
Qualifying for purchase order funding is quick - and easy
To qualify for po funding, you must sell products to other businesses (or government agencies) who pay their invoices reliably in 90 days or less. Establishing a po financing line usually takes 5 to 10 days days and most businesses can qualify, provided they have good customers and are well managed. What to find out if you qualify? Call us at (877) 300 3258 or fill out the po financing inquiry form to have someone call you.
Need more information on po financing?
If you want to learn more about purchase order financing, please visit our Purchase Order Financing Resource Center. The resource center is full of articles that will help you decide if po financing is the right solution for you. Here are some of the most popular articles:
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