Purchase Order (P.O.) Financing

Purchase Order financing provides working capital based on confirmed customer orders, allowing businesses to fulfill sales without tying up cash. This solution is designed for companies that need funds to complete orders tied to future sales and may be operating in higher-risk industries or facing credit challenges.

How P.O. Financing Works

• A purchase order is a document issued by a customer requesting specific goods or services.

• Your business submits qualifying purchase orders to a third-party financing provider.

• Funds are advanced specifically to cover the costs required to fulfill the order.

• Once the order is completed and the customer pays, the transaction is settled.

What Determines Rates and Approval

Pricing and eligibility are evaluated based on:

• The strength and reliability of the purchase order

• The duration of the funding required to complete the order

• Your credit profile

Questions to Consider

Before using purchase order financing, ask yourself:

• Do you have confirmed purchase orders that have not yet been fulfilled?

• Are you currently using purchase order financing?

• Are you unable to cover the upfront costs needed to complete an order?

Documentation Typically Required

To move forward, providers generally request:

• A list of outstanding or unfulfilled purchase orders

• Financial statements

Helpful Things to Know

• Purchase order financing is not a loan, meaning it does not create traditional debt.

• The application process is typically simpler and faster than many other financing options.

• Funds can only be used to fulfill the specific purchase order tied to the financing.

• P.O. financing can support a single transaction or scale as your business’s funding needs grow.