What is Purchase Order Finance?
Purchase order finance is commonly used for trading businesses that buy and sell; having suppliers and end buyers. Financing is on the basis of purchase orders that allow a shot of finance into a growing company – this type of facility is sometimes used or not known about by many companies and is at many times an alternative to investment. It also provides huge advantages when negotiating with suppliers and end buyers – gaining credibility within the transaction chain.
Purchase Order Financing
Why do you need purchase order financing?
- You want to conserve your bank lines
- You have reached your current maximum line of credit
- Your suppliers have changed your payment terms
- Your bank has limited the amount you can borrow on your inventory
- Your business is increasing, yet your bank is saying NO to additional credit
What are some of the Benefits of Purchase Order Financing?
- No Liens or UCC1 Filings
- We look at the credit of your customers
- We will lend on the growth of your business, more P.O.’s means more credit
- We do not require you to pay off any existing bank loans or leases