What is Purchase Order Financing Purchase order financing (or PO Funding) is a short-term commercial finance option that provides capital to pay suppliers upfront so your company doesn’t have to deplete cash reserves. Here is a representative scenario: A business has a solid purchase order ready to fulfill, but not the funds to pay its suppliers upfront; nor is the bank willing to extend the amount of credit that would be required. Using a purchase order finance company, the suppliers are paid directly usually via a letter of credit. The business fulfills the order; with proceeds arriving after shipment is received. Who uses it and why? Purchase order financing is designed for growing businesses with little access to working capital and/or poor cash flow. The type of business that qualifies is usually a producer, distributor, wholesaler or reseller of manufactured products. If your company finally landed that dream order, but there’s no access to the capital needed to make it happen - you should consider purchase order financing. Feel free to give us a call to discuss your opportunity 1-888-693-1439 Building, Improving and Securing Credit Through Safe, Secure and Affordable Solutions
Posted on: Mon, 17 Mar 2014 18:14:06 +0000
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