Purchase Order Financing/Inventory Loans

Transaction Size: There are no loan amount limits. The amount is based upon the value of qualifying purchase orders.

Processing Time: Establishing a Purchase Order Financing line usually takes 5 to 10 days.

Purchase Order Financing is a short-term commercial finance option available to those with order(s) from one or more credit worthy clients (invoices paid reliably in 90 days or less). Purchase Order Financing is easy to qualify for and can be completed quicker than traditional bank financing. Most businesses can qualify, provided they have solid customers and experienced management. Purchase Order Financing can be an easy answer to lack of funds to fulfill orders.

Purchase Order Financing allows you to finance up to 100% of your supplier costs. There are no arbitrary limits; it is directly tied to your purchase orders. Purchase Order Financing is an ideal for growth stage wholesalers, distributors and resellers or other companies that sell third-party products. It is also a tool for Letters of Credit for trade finance, including import and export transactions and domestic trade purchases.

Purchase Order Financing is simple. After the account is set up, you can use it to finance not only your current orders, you can also use Purchase Order Financing for subsequent orders.

To qualify for purchase order funding, you must meet these criteria:

• You must be a product re-seller or distributor
• You must have a commercial or government client
• You must have at least $50,000 in monthly sales
• Transactions must have a gross profit of at least 20%
• Must not be a direct manufacturing company (Invoice factoring services are available to companies that sell a service or manufactures goods directly, rather than out sourcing)

How It Works

The process is very straightforward and works as follows:

• Your company has a purchase order from a customer
• After Purchase Order Financing is secured, we issue a letter of credit with the supplier as the beneficiary (a bank guarantee to the supplier that of the buyer’s payment)
• Your supplier delivers the goods
• The order is delivered to and accepted by your customer
• Your company issues an invoice to your customer
• Your customer pays the invoice
• The transaction is complete

Benefits

• Allows you to grow without increased bank debt or selling equity
• Helps ensure timely deliveries to customers
• Places you in a position to increase market share
• Allows you to increase your profits by fulfilling more orders

Once approved the Purchase Order Financing can be used for future orders