Purchase Order Finance

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Are you afraid of large orders due to the time it takes from the time you pay your supplier to the time you get paid by your customer? Purchase Order Finance offers a solution to this cash flow issue which quite often slows a business’s rate of growth.

We can source funding based on firm orders from solid customers, new contracts or reliable suppliers. Assets and other forms of security may not be required.

Purchase Order Finance allows you to take on work that you previously could not.
As a result,  you can take on bigger orders and grow your business quicker. Creditworthy clients are essential.

Purchase Order Financing allows you to:

  • Increase turnover without using existing capital reserves.
  • Place larger orders enabling volume discounts & enhances customer/supplier relationships
  • Purchase order financing enables upfront payment of suppliers who will reward you with pricing discounts -costs of funds can be absorbed
  • A smoother supply chain is ensured due to quality controls and delivery times that are met

This is how it typically works:

Purchase Order Finance

  • You receive a purchase order for goods from your customer.
  • You submit the customer purchase order to the financier for approval.
  • Financier makes direct payments to your supplier/s so that the goods for the Purchase Order can be produced and shipped.
  • Your supplier delivers final product directly to your customer or to a third party warehouse until shipped to end customer.
  • You then invoice for the shipment and send a corresponding copy to the financier.
  • Financier, using a connected invoice factoring facility, pays out the trade finance facility
  • End customer pays the invoice to financier and the balance is paid to your account.

Different financiers will have slightly different models with some providing confidential finance.

Call in the experts in Purchase Order Finance options to discuss your business. Allow us to show you an alternate intelligent way to grow your business.

Check out our Commercial Finance Page for all our commercial finance options.

Contact Us., feel free to give us a call to discuss your options 02 9453 0300.

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