If your company is contemplating expanding, currently expanding or receiving new or larger orders than it has received in the past and lacks sufficient capital to complete the new orders, that is where we can assist. This lack of capital can be a result of the company having exhausted its line of credit, lacks assets sufficient for conventional lenders, or is unable to obtain conventional financing, and does not want to give up ownership for financing, all of which will cause a cash flow problem.

In North America, a Purchase Order (P.O.) is a legal agreement signed by a buyer requesting a seller to provide goods or services. Purchase Orders normally list the amount of goods or services required and the terms and conditions of delivery and payment.

Major domestic buyers will normally issue a P.O. requiring extended payment terms such as Net 30 to 60 days. Domestic and Overseas suppliers will usually ask for COD or sight draft Letter of Credit terms or in exceptional circumstances a short pay period. For a middleman, this difference in terms of purchase and of sale can be a problem.

Purchase Order Financing can be a solution to this cash flow dilemma. Purchase Order Financing is a short-term funding technique used to finance the purchase or manufacture of goods that have been presold to a creditworthy customer. Lenders that offer this specialized form of financing can assist in the purchase of product inventory by using the inventory and confirmed purchase orders as collateral.

Importers, Exporters, Distributors, Manufacturers are all candidates for Purchase Order Financing. Funds may be used for issuing Letters of Credit, cash payment to suppliers for finished goods, raw materials or direct labor. Purchase Order Funding is a risky form of financing and therefore costs more than traditional financing. It requires extensive due diligence, and lenders are highly selective.

Purchase Order, Import/Export Financing and Factoring are not loans.

Purchase Order and Import/Export Financing are short-term funding techniques used to finance the purchase or manufacture of goods that have been presold to a creditworthy customer.

Factoring occurs after the Invoice to the customer is completed and the product delivered.

This specialized form of financing can assist in the purchase of product inventory by using the inventory and confirmed purchase orders as collateral.

Purchase Order and Import/Export Financing requires extensive due diligence, and our partner is highly selective.