Purchase Order Financing

Growing your business is important. For a new entrepreneur, the first few years of growth can make or break their business. Murphy's Law also dictates that this is the time in a business' life when things are the most difficult - credit is at a premium, customers are still wary, and suppliers are diligent in their efforts to collect quickly.

Today's smart entrepreneur understands that the deck is stacked against him, but also knows that the odds can be tipped easily, with one process. That process - purchase order financing.

Consider this scenario: You just closed on a large contract with a local municipal government, and they want you to start providing them with goods right away. The contract is a make or break kind of contract, and could mean a fairly stable degree of orders in the future if it is done right. You're ready to go. Then, you discover that your client has a payment policy which is Net 60.

Ok, so you'll have to wait. But after contacting your supplier, who you do not have a long history with, you've discovered that all goods delivered will have to be paid C.O.D. . It's more common than you'd think. But the real question is, what do you, as an entrepreneur do?

If you thought the answer was "take out a mortgage on my house", you can rest easy. There is no need for this. And, we're not going to tell you that you're going to have to "think outside of the box". Again, a useless answer. What we can tell you is that purchase order financing is your ace in the deck.

With Purchase Order Financing, you effectively take out a short term loan based on the contract you have with your client. The loan is not, of course, based on your business credit (which in the growing stages can be stretched very thinly).

Instead, purchase order financing, a form of factoring, essentially uses your client's credit rating in order to provide a loan to you. In essence, your purchase order becomes a valuable asset, which allows you to borrow up to 80% of the balance due at issue. It can work for you, no matter your credit history.

The three steps for obtaining purchase order financing are this simple:

• Receive the purchase order from your client
• Find a reputable supplier for your product and place an order to that supplier
• Give us the details, and we can issue a draft or wire for up to 80% of the purchase order total.

The process is simple. And it works for thousands of companies across the United States and around the world, everyday.

You probably have questions. No problem. We encourage you to call us at the number above, or contact us here. Alternatively, if you think you're ready to use purchase order financing today, apply here. You'll be glad you did.

FAQ | Glossary | Process | Required Documents | Services
Accounts Receivables Outsourcing | Small Business Funding
Accounts Receivable Management | Business Receivable Factoring
Factoring Financial Services | Accounts Receivable Factoring Company
Factoring Accounts Receivables | Accounts Receivables Factoring