Purchase Order Funding applies to distributors and other suppliers of finished goods in which funding is needed to fulfill a confirmed order to a creditworthy customer. For orders to be eligible for Purchase Order Funding they typically need to be at least $20,000 with a gross margin of at least 20%. At the top end, orders can be financed that are in the millions of dollars.
Large orders, seasonal sales and business expansion can place real pressure on your cash flow. Some suppliers want you to pay cash on shipment while your customer wants to pay you net 30 to 60 days. At the same time, labor, packaging and shipping costs all have to be met. While the opportunities for future sales and growth may be great, these conditions constrict the life blood of your business - your cash flow.
Our purchase order funding service makes your deals not only possible, but profitable. We can provide funds against confirmed orders, or one-off sales, to creditworthy businesses or government.
We can advance up to 100% of the confirmed purchase cost to your supplier by paying them directly and taking ownership of the goods. We directly send the goods to your customer and we collect the invoice payment from your customer. We pay you the balance between the order value and the amount paid to your supplier, minus our fees and cost of money used, once payment has been received.
The result is that through our purchase order funding you are able to fulfill a major order that you would not otherwise have been able to using our funding to make substantial profit.
For more information, contact Frank Erwin