Purchase Order Financing
What is Purchase-Order Financing?
Purchase-order financing is a short-term commercial finance option that provides capital to pay suppliers upfront so your company doesn’t have to deplete cash reserves.
Let’s assume your business has received a larger than average order, or a series of orders that will deplete all your cash reserves.
Your suppliers are not willing to provide credit terms sufficient to allow final payment from your customer, the buyer. You are then put into a position of either operating your business precariously with little to no cash on hand, or passing on the order because you simply can’t fulfill the needs of your customer.
Why Use Purchase-Order Financing?
Purchase order financing is designed for growing businesses with little access to sufficient working capital and/or poor cash flow. The type of business that qualifies is usually a producer, distributor, wholesaler or reseller of manufactured products.
By using our purchase order financing programs, your suppliers are paid directly, usually via a letter of credit, enabling you to fulfill the order with proceeds arriving after shipment is received.
Finished goods coming from your supplier directly to your buyer are always a preferred transaction; however, we will look at minimal work-in-process deals as well.
The Be Remarkable Investment & Funding Group provides multiple strategies for delivering working capital to SMB’s and middle-market businesses across a broad spectrum of industries. Please feel free to call us for a free no-nonsense, consultation at: 1-704-749-0298.