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.
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.
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.
Contract Credit specializes in manufacturing and distribution businesses, offering a great selection of Purchase Order funding options for both domestic and international transactions.
We offer 3 main types of Purchase Order Requests:
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.
In order to apply for PO financing, there are a few requirements a company has to fulfill.
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.
If you are still not sure about how PO financing can benefit your company, here’s a quick summary: