PO Financing
PURCHASE ORDER FINANCING
PO financing is designed for your growing businesses. Pay your suppliers for the goods you need to fulfill outstanding customer orders.
How PO Financing Helps Your Business
PO financing enables good companies to complete their viable trade transactions. It’s most suitable for fast growing and relatively small, undercapitalized companies with large, seasonal or opportunistic orders. Like many other alternative financing programs, this solution serves as an alternative to equity.
What sectors might be a good fit:
- Import
- Seasonal
- Low-Tech
- Light Assembly
- Cosmetics & Food produced at a co-packer
Typical Buyers
- Big Box retailers
- Government entities
- Subscription box companies
Funding will cover up to 100% of the transaction costs, including:
- Cost of Goods (inclusive of factory deposits)
- Freight
- Duty
- Insurance
- Trucking
Key Features
- Understandable Product
- Management Expertise
- Transaction cycle on average between 30-90 days
- Presold Product
- Quality & Qualified Buyers
- Funding available for deals as small as $10,000 and as large as $1,000,000+
Basic Required Information to Evaluate Transaction
Corporate:
- Current Financial Statements
- Most recent Federal Tax Return
- A/R and A/P agings
Transaction:
- Copy of Buyer PO
- Copy of Supplier PO
- Description of Transaction
Prospective Client Evaluation Criteria
While a prospective client’s current financial condition will be evaluated, other criteria are also considered:
- Management expertise: Management must have a proven track record.
- Product Sourcing and Quality: Vendors must have a demonstrable ability to fulfill client’s purchase orders with a quality product.
- Logistical Control of Product: Must be able to monitor the movement of raw material and finished good from vendors to end buyer.
- Creditworthiness of Client’s Customers: Verifiable purchase orders from reputable companies
- Verifiable Repayment: By a financially stable factoring company or direct payment from the client’s customer.
We have established relationships with the most trusted and active PO finance companies available. If you are considering this type of funding for your business, we can connect you to a potential funding source and work to get you an offer.
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