• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Purchase Order Financing

My WordPress Blog

  • Home
  • About
  • FAQ
  • Industries
    • Government Contracts
  • Blog
  • Contact
  • 800-385-0660

PO Financing · Published on July 31, 2009 Updated on August 18, 2017

Kick Start Your Business With PO Financing

Kick Start PO Financing

As a business owner, the worst feeling is turning down a big order. I put together a couple of scenarios to illustrate how you could avoid that in the future.

Scenario One: A new, start-up business gets its first big order. Thoughts of profits, new supplies and equipment, and future expansion come immediately to mind. But reality sets in when the supplier needs payment up front, requiring cash that just isn’t there. And as a new business, neither has the credit history or banking support. The big order has to be refused.

Scenario Two: A well-established business – with decent capital and a good bank – gets a huge order, the biggest in its history. Too big for its existing line of credit. Opportunity missed.

The solution to both situations is PO Financing (also called Purchase Order Funding). A third party will issue a Letter of Credit to your supplier, which serves as an advance on the the funds you have been promised in the form of your Purchase Order. Now you have the capital to fulfill your big order. What Purchase Order Financing does NOT do is give you any extra money, for, say, operating costs. You might receive somewhere between 45 and 65 percent of your expected invoice amount. And the financier earns a fee for its service, usually no more than 4%.

For new or established companies (US, Canada or International), Purchase Order Financing can help you accept larger orders, build your reputation, and grow your business. Is there any better feeling as a business owner?

Filed Under: PO Financing

Previous Post: « Open More Doors – PO Financing & Letters of Credit
Next Post: Purchase Order Financing Can Ignite Rapid Fire Growth »

Primary Sidebar

Our Fast-Finance Process:

  1. You get a large purchase order from your customer
  2. We verify it, and open a Letter of Credit to pay your supplier,
  3. Your supplier manufactures and ships its goods
  4. Finished goods are delivered to your customer, who remits payment to us

Testimonials:

“They provided the funds we needed for our replication business to move to the next level. I strongly recommend them to all my business associates. ”
— Brian, Bay Area

Recent Posts

  • New look, same creative solutions
  • Purchase Order Lending – Find Your Financial Flow
  • Purchase Order Factoring – Danger Will Robinson

Categories

  • News
  • PO Financing

Contact us to learn more! 800-385-0660

Footer

Follow Us


Industries

  • Government Contracts

Navigation

  • Home
  • Contact
  • Glossary
  • Case Studies
  • Privacy Policy
  • Sitemap

Headquarters:

Purchase Order Financing
203 N LaSalle #1325
Chicago, IL 60601
800-385-0660

© 2023 · Purchase Order Financing · SUPPORTING BUSINESSES SINCE 2002