Many states are now permitting many businesses to re-open. We can help you secure working capital to get your business moving.
Within the past few days, funding requests for PPE gear, such as gloves, masks, gowns, face shields, have come in. Many companies need cash to simply restart operations, i.e. advertising to let your clients know you are back in business. Please reach out to me at with your questions and requests.
Purchase Order (PO) Financing is a type of commercial financing that allows a business to receive funding for a pre-ordered project using the purchase order from the client as collateral. Many times, small or growing businesses will not have the funds on hand that they need in order to purchase all of the materials necessary for a big job, nor can they obtain credit from a traditional financial institution based on their credit alone. The difference between PO financing and traditional bank financing is that PO bases its credit decision off the financial situation of your client. A bank would be looking at your finances alone regardless of any purchase order promising future income.
Purchase Order Financing can remove barriers to growth that trying to obtain traditional financing might cause. It also has a generally higher turnaround time in processing than traditional commercial loans. Payment is made to your suppliers. The lender receives payment from your customer. Your profit is paid directly to you.
Purchase Order Financing enables a company to:
Process large orders and expand production without worrying about depleting cash reserves.
Obtain financing for presold goods and inventory to promote business growth and opportunity.
Maintain its reputation as a business worth working with.
Enable continued growth.
Purchase Order Financing program is used to finance the purchase or manufacture of specific goods that have been presold by our clients to their creditworthy customers.
Typically, this structure is combined with one of our factoring programs to finance the entire trade transaction or trade cycle.* With this combination of funding upfront to cover supplies from the purchase order and reliable cash flow from factoring, businesses can assure they never are lacking in needed funds to complete an order or to continue taking on additional orders.
* Trade cycle – the duration of time that a company receives an order from a customer, orders goods from their supplier, delivers goods, and receives payment from the customer.