Services

Purchase Order Financing

Purchase Order Financing involves the financing of an order rather than financing the delivery of products or services.

Growing businesses can experience more difficulty to obtain the PO Funding type of commercial finance.

Purchase order finance is routinely arranged by factors in the form of "pre-ship" invoice financing for the business purchase order

Various companies have specialized their business to focus on traditional purchase order financing.

Your business can benefit from Factoring Advantages relationships developed with most of the nations leading providers of purchase order financing.

Most of the requirements and specifications for purchase order financing can vary between lenders, most of the qualifications are fairly standard.

What are the basic qualifications your business needs to use purchase order financing Already established a factoring relationship

Not creating a product inventory nor just simply engaged in re-packaging

Already have established a good acceptable credit history

Orders must reach a significant threshold of $100,000 or greater

Note difference between Services Performed versus Goods to be Delivered.
Purchase Order Financing is only applicable for Goods to be Delivered and not used for Services Performed.

Local commercial lenders such as banks typically provide financing for Services Performed. Financing of this type is commonly referred to as "contract finance" and is not PO Financing or purchase order funding.

Importers that purchase goods from the Pacific Rim, Europe or other global locations have found that purchase order financing provides a powerful effective business tool.

In certain instances, a business should consider utilizing import/export financing transactions instead of purchase order financing. This can often provide a simpler solution than the more complex purchase order factoring.

Factoring Advantage is more than willing to review your existing or proposed opportunities to utilize purchase order financing. Talk to us for a complimentary review.