Purchase Order Finance

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.

Assets and other forms of security may not be required. If you have firm orders from solid customers, new contracts or reliable suppliers we can source funding based just on these orders.

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

Commercial Point Finance sourced Purchase Order Financing allows you to:

  • Increase turnover without using existing capital reserves.
  • Place larger orders enabling volume discounts & enhances customer/supplier relationships
  • Costs of funds can be absorbed as purchase order financing enables up front payment of suppliers who will reward you with pricing discounts
  • Ensure quality controls and delivery times are met ensuring a smoother supply chain.

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 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 send a corresponding copy to 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.

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

Call 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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