Purchase Order Financing

What Is Purchase Order Financing?

You’ve just received a large order from one of your clients, an order that could go a long way toward growing your business, your reputation, and your relationship with that client. There’s just one problem—you don’t have the funds to fill the order. You can’t afford to turn down the purchase, but you can’t afford to complete the order. Not only would losing the sale hurt your bottom line, but it could also potentially damage your business’s reputation and cost you deals with other clients if word gets out. What do you do? You need to find the cash that the sale requires, and purchase order financing is an excellent option that can help you do that.

Like invoice factoring, purchase order financing can help you get the working capital you need to continue expanding your business. However, while factoring only allows you to get the funds you need after you generate an invoice, purchase order financing gives you an option to fund a purchase for a client before you bill them. If you need to fill one or more orders for your clients, this funding option could be your best choice.

What Is Purchase Order Financing?

Every business has cash flow problems at one point or another. In purchase order financing, AA Bankers funds the cost of one or more orders in part or in full for a fee. We then collect the invoice amount from your client, subtract our costs, and return the remaining amount to you.

The requirements for qualifying for purchase order financing are much more relaxed than bank financing. You do not need to have excellent credit. Qualifying for financing depends on the credit and trustworthiness of the client who requested the order. Other advantages of purchase order financing include the following:

  • The ability to take on bigger orders and grow your business and reputation
  • Purchase order financing is not a loan
  • Quick payout
  • Startups and small companies can qualify

While purchase order financing does have some stipulations, it can help businesses grow past their financial limits. If you want to learn more about purchase order financing from AA Bankers, set up a meeting with us today. We will help you find the financing option that best suits your needs.