PO Finance: Funding Options You Might Not Know About
As a company owner, you’re probably familiar with this scenario: your company lands a large purchase order from a big box retailer and your factory is looking for a deposit. You’ll need some additional working capital to make it happen but where do you get the funds? What are your options? What is PO Finance Quickly defined, purchase order finance is funding primarily secured by the product purchased and the resulting receivable. PO finance differs from a traditional loan in that payments are made directly to your vendors and your buyers remit payment directly to Global Trading Partners. What Can Purchase Order Financing Be Used For PO finance can be used to fund the purchase of any imported or domestically produced product. It can cover manufacturing costs, freight, duty and domestic drayage.Here’s an example. Let’s say your purchase order is from Walmart for an art supply kit and the P.O. is for $500,000. The delivery …Read More