Purchase order financing is an effective form of funding in which cash money is advanced against a purchase order for finished goods or to finance the manufacturing of the items. Purchase order financing gives you the cash flow necessary to have products available for your clients before you receive payment for it.
If you are a product manufacturer, importer, reseller or distributor, and need capital to deliver a large purchase order, then purchase order funding can be a viable solution to fill your orders and grow your business.
It’s a great funding alternative, especially for start-ups and fast growing companies with purchase order sales of $75,000 – $3,000,000.
What is a Purchase Order (PO)
A purchase order (PO) is a signed document issued by a buyer to a seller, indicating terms for products and / or services, such as: product names, quantities and prices. A purchase order submitted to and accepted by a supplier constitutes a legal offer or binding contract to buy / sell products or services.