Purchase Order Finance – Fund Larger Orders

Do you want to take on large customer orders but do not have enough cash to fund the purchase orders?

Purchase Order Finance offers a solution to this cash flow issue. This issue 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.
  • Quality controls and met delivery times ensure a smoother supply chain.

This is how it typically works:

  • 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. 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. Or give us a call to discuss your options 02 9453 0300.