Purchase Order Financing

  1. Customer Order: You receive a purchase order from a customer.
  2. Financing Request: You work with us to request funds to fulfill the order.
  3. Supplier Payment: The financing company pays your supplier directly for the goods or services needed to complete the order.
  4. Order Fulfillment: The supplier ships the goods to your customer.
  5. Customer Payment: Your customer pays the financing company directly.
  6. Settlement: The financing company deducts its fees and sends you the remaining balance.

Advantages of Purchase Order Financing:

  1. Improves Cash Flow 
  2. No Collateral Required
  3. Quick Approval 
  4. Supports Growth

Disadvantages of Purchase Order Financing:

  1. Higher Costs: The fees and rates can be higher than traditional financing options.  
  2. Dependancy Risk: Over-relyance on this financing can lead to dependancy which increases risks if market conditions changes.
  3. Less Control: The financing company may have more control over the transaction including direct payments from your customer.
  4. Not Suitable for all businesses: Not the best option for business with low margins or those that don't have a steady stream of orders.

Applying is Simple

We'll talk you through it