Purchase Order Financing
If you are a government contractor or doing business-to-business transaction, you could qualify for Purchase Order financing. In order to do so, you receive a contract or order to provide goods at a specific time and you need to deliver. You do not have the financial resources to do so. Utilizing Purchase Order Financing helps you execute your contract or order requests.
This type of financing works closely with Factoring of Accounts Receivable . You most likely give your clients15- 30 days to pay on your invoices. In most cases, they pay maybe 45-days out, 60 or even 90-days later. This can make things difficult for any company, and so, like most companies you could qualify for this type of funding.
Reasons to Utilize Purchase Order Financing
Business Expansion!
Increased Contracting Opportunities!
Increases Invetory/Equipment!
Increase Sales!
Unexpected Expenses!
Fill
more orders!
Pay
Supplies/Vendor in a timely manner!
Receive
Cash Discounts from suppliers/ vendors
Extend
Credit to Large Customers!
Cash
to GROW your business!
Funding Amount: No Minimum – No Maximum
Up-Front Fees: Varies per funding source - most funders do not charge an upfront fee.
Qualification: Any business doing government contracting and/or business-to-business transactions. We have few lenders who will work with you if you are doing business-to-consumer (call for more info).
Disqualification: Misrepresentation on Application
Requirements: To start the process the documents below could include BUT not limited to:· Application
· Articles of Incorporation
· Business Financial Statements
· Personal Financial Statements for owners
· Copies of Insurance Documents
· Authorization to Release Documentation
Personal Guarantee: Depending on type of industry/clientele.
Type of PO: Always Recourse
Company Types: Government Contractors, Product Distributors, Manufacturers, etc.
Closing Timeframe: Normally 30 days, could be less: depends on clients' need and any other issue(s).