Purchase order funding allows your company to purchase goods from a supplier or fund manufacturing of a product to complete an order to your company from a creditworthy customer when you lack the working capital to do so on your own.

With purchase order financing a buyer issues a formal agreement that a specific job is going to be delivered at a specific price. The order may be for finished goods that you acquire from a domestic or foreign supplier, and then deliver to your customer. The order can also be for goods that require some amount of manufacturing or repackaging before being delivered to your customer.

It is not uncommon that many businesses have more orders than they actually have the financial ability to fulfill. Just imagine how much lost business that equates to for your company!

By being able to complete the order you maintain the relationship with your customer and have the opportunity to receive future orders from that customer.

• Financing will be provided based on the amount needed to produce, insure
  and ship not on the amount of the invoice.
• Profit margins must be high enough to absorb funding costs.
• Quality of the suppliers involved in fulfilling the order.
• Only transactions where the customers are businesses are eligible for
  funding.
• Purchase order funding is not for inventory build-up but fulfillment
  only.
• An accounts receivables factoring arrangement must be in place to immediately
  pay off the purchase order funder.

• Copy of the contract
• Schedule of cash requirements to fill the order (cost breakdown)
• Transaction timeline
• Current aged Accounts Payable report
• Current aged Account Receivable report
• Factoring Agreement
• Personal Financial Statements of Principals

• Services
• Goods that will become part of a building or real estate
• Goods delivered on consignment (your customer can not have the option
  of returning the goods)
• Goods with no specific delivery date (contract funding is not for inventory
  build-up)
• Goods that require long production cycles
• Goods being manufactured by inexperienced company
• Un-creditworthy customer