Purchase order financing enables a lender to pay your suppliers directly for goods you are reselling to a customer who has issued a written purchase order. You can finance up to 100% of the purchase order amount, with typical rates between 1.8% and 6% per month.
Typically Used By
- Distributors and wholesalers
- Resellers
- Importers or exporters of finished goods
- Outsourced manufacturers
Step-by-Step Process
- Receive a purchase order from a customer
- Obtain a written supplier proposal
- Apply for PO financing and receive approval
- Financing company pays your supplier directly
- Supplier fulfills the order; customer accepts the goods
- Invoice your customer for the completed order
- Customer pays — fees deducted, balance remitted to you