Purchase Order Financing

Purchase Order Financing

Get the Financing You Need to Fulfill Orders & Take on Bigger Jobs. Receive a Line of Credit in as Little as 24 Hrs With Purchase Order Financing.

WHAT IS PURCHASE ORDER FINANCING?

​Purchase order financing is for companies that have purchase orders from credit worthy customers but are financially unable to deliver the order. Purchase order financing lenders will often cover 100% of the cost of goods, however, they like to see a gross margin of 25% or better. Purchase order financing lenders typically take 4% to 5% of the gross margin of the order as their fee, however, rates can be less expensive for volume commitments.

​Purchase order funding companies will usually pay suppliers directly through a letter of credit or wire transfer. Some purchase order financing companies will take title to the goods while others just provide the funding. Purchase order funding companies will want to track the goods throughout the shipment and delivery process. Most lenders will also want to have ocean freight and land freight insurance in place with the purchase order funding company listed as the loss beneficiary. These lenders treat the goods as if they were their own as they have paid for goods and need to see them delivered to recoup their advance. Most purchase order financing companies avoid carrying any of the credit risk involved with the receivables, and will require the client to have a factoring facility in place so that they can be repaid once the goods are delivered.Purchase order financing is an excellent to tool to help businesses grow and is a good alternative to selling equity in the business. At Green Capital Funding, LLC We work with many well-capitalized lenders that are aggressively lending. Many of our clients, companies just like yours, can receive the working capital they need even in today's hard economic times.

Turn your purchase orders into cash NOW, and gain the working capital and the peace of mind your company needs to succeed. Get a Free Quote Today from Green Capital Funding, LLC.

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THE PROCESS

Purchase Order Financing
Step 1: Receive PO from Customer

You receive a purchase order from your customer, which is forwarded to the lender

Purchase Order Financing
Step 2: Your Supplier is Paid & Customer is Invoiced

The lender will pay your suppliers for all purchases you made to fulfill the requirements of your Purchase Order. The value of the lender's advance can reach up to 100% of the value of the Purchase Order, depending on several other factors. Once your services/goods have been delivered, you will invoice your customer and send an additional copy to your lender.

 

Purchase Order Financing
Step 3. Collections & Payment

Your lender will take care of collecting payment from your client. Once the payment is received, your lender will release the payment to you (with the value of the supplier invoice and fees deducted).

WHO SHOULD APPLY FOR PURCHASE ORDER FINANCING?

  • Businesses that function as product resellers or distributors that have purchase orders from credit worthy commercial or government clients.
  • Businesses that do not have enough working capital to deliver the order.
  • Businesses that don’t qualify for financing at a traditional bank or financial institution

BENEFITS OF PURCHASE ORDER FINANCING

Increase Cash Flow through Existing Assets - Use you current purchase orders to access up to 100% of the cash tied up in your invoices within 24 hours

Easy to Qualify & Fast - Your credit and business's financial track are not major eligibility determining factors, and a line of credit can be administered within 24 Hours!

Opportunity for Growth - Take on larger purchase orders and take advantage of growth and acquisition opportunities with funding that grows with you.

Flexibility - Your line of credit is directly tied to the value of your accounts receivable and other assets, so it can increase as your contracts increase. Increases can usually be approved quickly, and your company will not need to complete the underwriting process again.

Lower Costs- Asset-Based Financing is less costly than most alternative solutions.

Opens Up Doors for New Business Opportunities - Your financing will increase as your contracts increase. This gives you the flexibility to take on multiple orders at once & grow your business.

Cash in as Little as 24 Hours  •  No Up Front Fees  •  Trusted Experts & Partners in Your Success   •Competitive Rates & Terms

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