Business Financing Programs
What is Purchase Order Factoring?
Factoring is a way where companies can receive funds for the work that they have done by selling their invoices to funding companies. Usually, the funding companies will forward a large percentage (90%+) of the funds and then collect the funds from the customer. Upon payment, depending on how long it took to secure the funds from the client drives how much of the remaining percentage is paid to the business owner.
*it is important to note that factoring companies require to be in a 1st position.
Sometimes you might have large orders to fill but do not have or want to use your cash flow to pay for the supplies needed to fulfill those orders. Purchase order financing is a short-term finance option that provides capital so you can pay your suppliers upfront, so your company does not have to deplete cash reserves.
Purchase Order Financing is extremely easy to qualify for as you will not need financials or good credit to get approved.
For approval, lenders will typically do a quick review of your outstanding purchase orders that need filled. If the purchase orders are valid and the suppliers you are dealing with are credible, you can be approved regardless of personal credit history. You can obtain financing for up to 95% of the value of your purchase orders. And rates are typically less than 4%. In many cases, we can get rates below 2% and even lower to earn your business.