Purchase Order Financing

Purchase order (PO) financing is a financial tool that allows your business to fulfill a large customer order by using a third-party lender to pay the suppliers. We can pay the supplier directly for the goods, and once your customer receives and pays for the order, we deduct our fees and give the remaining balance to you. This process helps businesses secure cash flow to take on large orders that they couldn’t otherwise afford.

How it works

• A business receives a purchase order from a customer but lacks the immediate cash to pay for the required goods. 
• The business applies for PO financing from a lender. The lender evaluates the creditworthiness of the business’s customer and supplier, not just the business itself. 
• The PO financing company provides funds directly to the supplier to cover the cost of producing or acquiring the goods. 
• The supplier delivers the goods to the business, which then ships them to the customer. 
• The customer pays the PO financing company directly for the order. 
• The financing company deducts its fees from the customer’s payment and remits the remaining balance to the business. 

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