A Complete Supply Chain Finance Solution

Purchase Order Financing is a financial solution for businesses to fulfill their product orders. Clients who are struggling with cash flow shortages can greatly benefit from Purchase Order Financing, another form of financing that invoice factoring companies offer. We offer this short-term solution for businesses that are unable to fulfill some of their financial obligations in order to deliver the clients’ orders.

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Purchase Order Financing is especially helpful when businesses decide to extend credit terms to their clients or simply when they have to wait for their invoices to be paid, normally in at least 30 to 60 days. This type of financing allows businesses to proceed with payments for manufacturing and transportation while waiting for their invoices to be paid.

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It is important to know that if your company has not delivered the product or goods to the client and most importantly have not invoiced them yet, then PO financing is the way to go. On the other hand, if your company has delivered goods and invoiced the client, invoice factoring is the better option.

What Kind of Businesses Benefit from our Purchase Order Financing Programs?

Contract Credit specializes in manufacturing and distribution businesses, offering a great selection of Purchase Order funding options for both domestic and international transactions.

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We offer 3 main types of Purchase Order Requests:

Finished Goods PO Finance: financing of inventory, one of the most demanded types of financing due to the fact that it pertains to an already completed and packaged product that is sold business to business.

Light Assembly Finance: this is a higher-risk financing as it can have several steps to it. The product is not “finished” and it goes directly to the client who then has to assemble it or obtain extra items to get it to a finished product.
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Production Finance: this type of financing is extended only to those clients who have already been doing invoice factoring with us for at least 2 years.

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Purchase Order Financing Made Simple

PO financing may sound confusing at first, but it’s actually a very simple and straightforward process that can help businesses growth and overcome cash flow hiccups. If explained step-by-step, PO financing is easy to understand.

Your company receives an order.
You obtain an estimate from your supplier or manufacturer.
After this, your company applies for PO financing.
The lender company will then pay the supplier or manufacturer
The lender company collects the money from your client directly.
Once the transactions is completed, your company receives the difference minus fees.

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Purchase Order Funding Criteria:

In order to apply for PO financing, there are a few requirements a company has to fulfill.

Must be a company based in the US
Must be retaining a 25% profit minimum
Must have at least an initial $100,000 transaction minimum
Must be in business for a year as a minimum
Must already be factoring receivables with credit approved customers
Must have experience and previous transactions with a client or other similar clients
Must have a viable purchase order from a creditworthy customer or a Letter of Credit

WHY CHOOSE US FOR PURCHASE ORDER FUNDING?

Custom P.O. Financing Structures

P.O. Financing Rates at 3% to 10%

Offer Early Payment to Suppliers

Finished Goods Finance Accepted

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Production Finance Accepted

Light Assembly Accepted

We Provide Factoring and PO Finance

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Or Call 24/7
1 (512) 828 6390

What is Considered in a Purchase Order Finance Transaction?

Industrial and Manufacturing
Wholesale distributors/ importers and exporters
Government Contracts
Service Contracts
Retail and Apparel
Direct shipment/Dropship orders
Project funding for the following costs:
Deposits
Raw Materials
Components and Sub-Assemblies
Project-specific Labor
Finished Goods
Overhead
Direct Manufacturing
Shipping
Letters of Credit
Letters of Guarantee

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Why Your Company Needs Purchase Order Funding from

Most companies have had the struggle of running low on cash flow, this can affect the ability to fulfill a big order from a customer. If you have not been there, you do not want to experience it. Not being able to fulfill an order and pay for manufacturing and delivery can cause your company to lose a client to another competitor.

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If you are still not sure about how PO financing can benefit your company, here’s a quick summary:

It is a simple process
No debt acquired, PO is used as collateral instead
Guaranteed form of payment provided
Order can be fulfilled without paying money upfront
Your company can continue growing
PO financing on orders of any size after a $100,000 minimum.

$250,000

$750,000