Purchase order financing is an excellent method for a business to obtain quick capital and it is a great solution when cash flow reserves are low. The problem happens with many businesses because the suppliers wants the business to pay upfront with a C.O.D., but the company’s customers want to pay on a net 30 or net 60 day terms. Cash flow is a common problem for manufacturing companies especially because while goods are in transit, invoices are not paid. Purchase order financing frees up a company’s cash for critical business expenses or to fulfill larger orders. Another benefit is that it does not show up as debt for the owners business. This makes it possible to not only use extra cash to get discounts on purchases, but it also allows a business to get approved for more financing. When you contact us for Purchase Order Financing, you can be confident that you’ll be working with some of the best funding companies in the country.
A small company in New York City that had only been in business for 6 months landed a large account with a national manufacturing company. Unfortunately, they didn’t have the capital on hand to fill the order and financing was very difficult to find since they had been in business for such a short time. However, the principals had significant experience in the industry, had a $3.2 million order in hand from a credit-worthy customer, and had sourced the parts from a large supplier. Our lender overcame the start-up nature of the company and focused on the underlying transaction at hand. In less than one week, our lender was able to underwrite a $1.95 million financing package that secured payment so the order could be filled.
|Amount of loan:||$3,200,000|
|Total time to close:||14 Days|