Ready for your biggest order yet? We’ll fund the supplier.
Purchase order financing pays your supplier directly, so you can fulfill large orders without giving up equity or waiting for a bank.
What is purchase order financing?
Purchase order (PO) financing is short-term funding for a specific sale. When a creditworthy customer sends you an order, and you need to pay a supplier or manufacturer to fill it, we pay that supplier on your behalf. Once the goods are delivered and invoiced, the transaction converts into invoice factoring, and your customer’s payment closes it out.
It is not a loan against your company’s history. It is funding against a real transaction: a real buyer, a real supplier and a real margin.
Is PO financing right for you?
PO financing works best when:
- You resell or distribute finished goods, or use a contract manufacturer.
- Your customer is creditworthy: a retailer, distributor, large company or government agency.
- Your gross margin on the order is at least 15–20%.
- The order is larger than your current cash or credit line can support.
- Delivery and invoicing are expected within 30–120 days.
Benefits
Up to 100% of supplier costs
We can cover the full cost of goods on qualified transactions.
Say yes to large orders
Your growth is limited by your customers’ demand, not your bank balance.
No equity given up
Keep 100% of your company. You pay only for the time the capital is used.
Direct supplier payment
We pay domestic or overseas suppliers by wire or letter of credit, which often gets you better pricing.
Seamless transition to factoring
When you invoice, the same facility converts into factoring. One partner, one process.
Transaction oversight
We monitor production, shipping and delivery with you, reducing the risk of surprises.
How purchase order financing works
- 01
You receive a purchase order from your customer.
- 02
You send us the PO, your supplier’s quote or pro-forma invoice, and basic company information.
- 03
We verify the order with your customer and review the supplier.
- 04
We pay your supplier directly, by wire or letter of credit.
- 05
Your supplier produces and ships the goods to your customer.
- 06
You invoice your customer. We convert the transaction into factoring and advance against the invoice.
- 07
Your customer pays. We deduct our fees and send you the remaining profit.
What it costs
Pricing depends on the size of the order, the strength of your customer and supplier, and how long the transaction runs. Fees are typically quoted per 30-day period. You receive a term sheet with every cost in writing before you commit. Because you pay only for the days the capital is used, faster transactions cost less.
Frequently asked questions
Straight answers. If yours isn’t here, a specialist will answer it within one business day.
Talk to a Specialist