Purchase Order Financing

First Capital Business Finance purchase order financing can help you if you have purchase orders that you cannot fulfill because you lack funds. As opposed to traditional bank finance, PO financing is easy to qualify for and can be set up quickly. The main requirement is that you have an order from a credit worthy commercial or government client.

Benefits of purchase order funding

Purchase order funding is a financing option that allows you to accept purchase orders, regardless of your current capital availability. It is an ideal tool for companies that have exhausted their available funds or bank options. PO financing enables you to finance up to 100% of your supplier costs, allowing you to deliver more and bigger orders. Furthermore, PO financing has no arbitrary limits like bank financing and is directly tied to your sales. This means that all you need to do to obtain additional financing is to obtain orders from solid commercial or government customers. PO Funding is an ideal tool for companies that sell 3rd party products such as wholesalers, distributors and resellers and are growing quickly.

Qualification criteria

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

  • Must be a product re-seller / distributor
  • Must have commercial or government customers
  • Must have a minimum of $50,000 in monthly sales
  • Transactions must have a minimum gross profit of 20%
  • Must not be a direct manufacturing company (using 3rd party manufacturing is allowed)

If your company sells a service or manufactures goods directly (rather than out sourcing) please use our invoice factoring services.

For more information call us today at 888-565-6692 or click on the Apply Now! button at the top of the page for free evaluation.