Purchase Order Funding

Whether your business is just getting to market or an exciting surge in demand has occurred, that big order is in! Now what? How do you fulfill? This program helps pay your suppliers and finance the cost of goods to be resold. This tool is typically coupled with a factoring relationship.

What Is Purchase Order Funding?
Purchase Orders are a formal agreement that a product is going to be bought at a specific price.

How Are Purchase Orders Created?
Purchase Orders are submitted to you by your customer's buyer to you, the provider of a product or service. This is a promise to purchase goods as opposed to you generating an invoice for goods already delivered. In some cases, cash is needed to allow the business to receive raw materials they need to fill the order and deliver the goods requested in the purchase order.

Benefitting from the funding of Purchase Orders
Purchase Orders are funded in conjunction with factoring the associated invoice. The proceeds from this funding must then be used for equipment purchases, raw materials, or other business expansion and expenses to fulfill the order. Many times funds are directly sent to your suppliers on your behalf.

Have you received LARGE purchase orders lately? Do you need money before you can fill the orders? Contact us and let us explain how we can help.