Purchase Order Financing

Leap Ahead with a Purchase Order Finance

What is a Purchase Order Finance?

Purchase order financing, “PO finance” for short is an agreement where a third party decides to provide a supplier with adequate funds to pay for a customer’s purchase order. In several instances, purchase order transactions take place where a “PO loan” will finance a whole order while in other instances they may only finance a piece of it. Once the supplier is prepared to ship the order, the purchase order financing company receives payment immediately from the customer. After deducting their fees for the conducting the transaction, the Lily Pad Financial will then forward the balance of the invoice to your business.

A PO scenario sounds like this. Your Company A submits a large order. After verifying with the supplier, you come to realize you are short on the necessary amount of cash on hand to meet the order. You quickly run down your list options and finally opt to give purchase order financing a shoot at the advice of peer.

How Does a Purchase Order Finance Work?

Here is what happens next: You make a phone call to a reputable PO financing lender, emailing them the purchase order itself and an estimate from your supplier. Let us Assume a provider after conducting due diligence approves you for the business financing, the provider forwards to your supplier the funds needed therefore your order gets filled. The supplier delivers the goods to the customer. Your company at this time will send an invoice to your customer for the goods. The customer will then send out the payment immediately to the financing company. A purchase order financing company after withholding their fees (which range up to 6% per month) for conducting the transaction; the financing company will forward along to your business the remaining balance.

What Are the Benefits of a Purchase Order Finance?

  • Allows a company to obtain large orders it would not have had the means to take on
  • Great tool to establish rapport and conduct quick and seamless business financing.
  • Stop standing in line to collect from customers monthly payments – Save Time
  • No monthly installment note
  • Bad Credit Accepted

 

Privacy Settings
We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
Youtube
Consent to display content from Youtube
Vimeo
Consent to display content from Vimeo
Google Maps
Consent to display content from Google