You just landed some large sales orders. The pressure is on. How are you going to finance them when your supplier wants paid immediately and your customers want to pay you net 30 to 60 days? Purchase order financing allows you to purchase certain materials and/or services needed to do business while freeing up your working capital.
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Call us at 1 (877) 876 2803 now (toll free).
Managing cash flow reserves against sales growth, costs
and overhead is a challenge for every business. All companies want growth, but when financial resources are low additional orders can put a strain on the company’s ability to do business. Purchase order financing can help. Purchase order financing provides an existing business the financial solution for continued growth.
Unlike a business loan, purchase order financing does not rely on your company’s financial strength. Rather, it relies on the financial strength of your clients. The main requirement is that you have an order from a credit worthy-end customer.
Purchase Order Financing allows you to enhance your cash flow by turning your receivables into cash.
Purchase Order Financing Benefits:
- Allows your company to grow without increased bank debt
- Helps ensure timely deliveries to customers
- Increase market share – no more missed opportunities
- Allows companies to make larger profits by fulfilling larger orders
- Take advantage of vendor discounts
- Meet seasonal requirements
- Increases sales and profitability
Purchase Order Financing works as follows:
- Your client issues a purchase order to your company
- The factor agrees to pay the your supplier using a letter of credit, supplier guarantee or cash
- The merchandise is delivered and accepted by your customer
- You send an invoice to the customer
- The customer pays the invoice
- Once the factoring company is paid, the transaction is settled and the remaining funds are returned to you less a small fee is returned.
If your business could benefit from having cash 24 hours after producing the invoice, then you may want to take a closer at export factoring. One of our financial consultants can answer your questions and provide a free factoring quote at 1 (877) 876-2803.
a quick factoring
here to get a great factoring
us at 1 (877) 876 2803 now (toll free).