Purchase Order Financing

Does this business triangle sound familiar? It doesn’t matter if your customer is unable to pay you at the time your supplier wants to be paid – at least not to your supplier. Regardless, your packaging, shipping, product and labor costs have to be met. Unless you have a very close business relationship with your supplier and can be granted an extension to make payment, it’s likely that you won’t be able to fulfill your customer’s order. This inability to obtain the supplies you require to fulfill the order means a damaged reputation, lost revenue and probably a lost customer as well. Given the fluctuating economy, there is no guarantee this problem will not recur with another customer in the future. Without a workable solution to this nightmare scenario the future of your enterprise may be in jeopardy as well.

Fast Facts

Loan Amount

Up to 90% of P/O

Loan Term

Ongoing

Time to Fund

3-7 Days

Benefits

  • Turn Purchase Orders Into Cash
  • Competitive Rates
  • Acquire Larger Customers

Obtain Working Capital with PO Financing from National Business Capital

Purchase order financing (also known as PO financing) is a way to obtain cash which is advanced against a purchase order for Finished or Non-Finished Goods to finance their manufacture. This provides the means to fulfill your commitment to your customer and to preserve your standing as a trusted business operator. To take advantage of purchase order financing, you must secure the proof of delivery and acceptance of goods, and invoice your financier for the goods at an agreed discount. Then, the lender invoices your buyer for the full amount and collects the payment according to your agreed terms. After the payment has been received, the balance is paid (less applicable administration fees and the cost of money used.) The process for Non-Finished Goods differs slightly in that it involves the seller taking possession of the goods in an unfinished state.

While traditional financial institutions offer these funding vehicles, their loan process takes weeks and sometimes months to complete. This is not an acceptable timeline for many business owners who need working capital as soon as possible. National Business Capital has an over 90% acceptance rate and once our two-minute application form is received we will provide an answer in 24 hours or less.

Purchase order financing presents the ideal funding option for businesses that require the cash flow to fill orders and avoid a tarnished business reputation. PO financing is simpler to undertake than bank financing as it hinges on the creditworthiness and financial strength of the company that has placed the order, rather than the manufacturer’s business itself. National Business Capital offers both Finished and Non-Finished PO financing to assist you to make your business transactions advantageous, achievable and profitable. To apply now, please fill out our two-minute application. If you have further questions about purchase order financing, call our helpful and knowledgeable representatives at (888) 888-9124.

9 Reasons Why National Business Capital Is The Financial Partner For You

Compare Purchase Order Financing Options

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