Purchase Order Financing

Purchase Order Financing

Purchase Order Financing is short term funding that is used to finance the purchasing or manufacturing of products that have already been pre-sold by the client to a credit worthy customer. This type of financing allows clients to secure the inventory they need to fulfill customer orders while maintaining a healthy cash flow.  PO Financing can be combined with accounts receivable factoring which allows for an advance against receivables after the goods are shipped.

Utilizing PO Financing to Better Your Business:

  • Obtaining Sufficient Capital
    Companies that have solid customers and/or sales but do not have the working capital to complete transactions will benefit from PO Financing.
  • Transfer of Risk
    Clients transfer the risk of payment by the end customer to the PO Financer.  When PO Financing is combined with Accounts Receivable Factoring, the client is not responsible for the collection of any monies owed.
  • Enhanced Profits
    Clients can grow more quickly when they have access to available capital to do more business.  Our clients are able to take on additional clients that they would not have otherwise had the cash-flow to handle by utilizing PO Financing.
  • Credit Worthiness
    Since PO Financing is distributed based on the credit-worthiness of your customers, SunState Consulting is able to provide working capital where banks and traditional lenders cannot in cases where the company’s youth,  financial statements, or collateral will not support sufficient borrowing.
  • Flexibility
    PO Financing can be used in various ways.  For Example, to fund finished goods that will be shipped directly to the customer, to pay for raw materials or labor costs, or to pay for packaging and shipping costs.

If you are interesting in obtaining purchase order financing for your business, pleasecontact us to discuss your needs or click here to apply online.

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