purchase order finance
Gives you the cash needed to start the work
Normally used by SMEs who are unable to take on large orders from customers due to lack of cash resources needed to make a full, upfront payment on goods
Allows you to receive the funding you need for suppliers, staff and other costs as soon as you receive an order
Bridges the gap between an order being placed and paid for by a supplier and the payment is received by the end customer
Provides a fast, effective short-term cash injection allowing you to pay for goods or raw materials that are needed to fulfill a large order
how does purchase order finance work?
Purchase Order Finance works differently to invoice factoring and discounting, as it is secured against the initial purchase order (PO) from your customers instead of their outstanding invoice. The lender that we pair your business will be centred around the size of the order and their credit score.
This method of finance acts as a huge benefit for growing businesses as it focuses on the customers ability to pay for the completed PO instead of your own businesses finances.
When the order has been delivered and the invoice has been raised, you will repay the amount that you borrowed as well as any transaction fees and interest.
benefits of purchase order finance
Transparent Repayment Terms
Your finance partner will work with you, your customer and your supplier to make sure that affordable repayments are made
We will assess the suitability of each lender to make sure it meets the needs of your business and the industry you are in
If you use purchase order finance to secure stock from suppliers, they'll treat you like a cash buyer instead of having to open an additional line of supplier credit. This will attract better rates for you so you can profit off each other.