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Need Cash Flow Solutions For Your Business?

Don't turn down those large Purchase Orders. Let us be your finance partner at competitive rates!

 

Do you have a large purchase order?

 

Getting a large purchase order is one of the best things that can happen to you as a distributor or wholesaler. A large order indicates that things are going well.

 

However, a large purchase order can also be a problem if your company does not have the cash to pay suppliers. If you fail at this order, your client will likely go to a competitor and you will lose the sale forever.

 

Large orders can create cash flow problems

 

Fulfilling large purchase orders is expensive as suppliers often demand immediate – or advance – payment before starting production. Furthermore, they also demand full compensation before shipping the goods.

 

On the other hand, most large commercial clients demand net 30 – 60 day terms as a condition of doing business. And your company is caught in the middle – having to prepay suppliers. Unless you have sufficient resources or a way to finance the transaction, you won’t be able to fulfill the order.

 

The solution

 

You can solve this problem and make the sale by using our purchase order financing. PO financing provides funding to pay your suppliers, which allows you to deliver goods to your clients.

 

Transactions follow a simple structure. Most are implemented as follows:

ADVANTAGES

 

  • The size of the line is flexible and is determined by your sales

  • The solution is available to small companies

  • The program is quick to set up

 

COSTS

 

Purchase order financing rates are set by the dollar amount of the transaction, the general risk, and the length of time that the funds are used.

 

QUALIFICATION REQUIREMENTS

 

To qualify, the PO must meet these criteria:

 

  • Gross profit margins must be at least 20%

  • You must sell finished goods from your supplier (with no modifications)

  • Your commercial or government customer must have good credit

  • Your supplier must have the capabilities to deliver your order

  • Your company must not have any legal or tax problems

  • Your accounts receivable must not be encumbered by liens

  • The company owners must have experience and reputation in the industry

 

 

 

*We can also work out any other arrangement that suits your needs!

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