PURCHASE ORDER FINANCING
The Purchase Order Financing Program allows client's to fulfill sales opportunities that are beyond
their current capital resources by providing financing up to 100% of the cost of pre-sold inventory.
The PO Financing Program provides incremental capital to clients-ie., capital that augments client's
existing lines of credit. Also provided are Letters of Credit to support import, export and domestic
Do you have Purchase Orders, but lack the funds to pay for the goods to fill those orders?
Our Lender's Purchase Order Financing Program augments client's existing lines of credit, significantly increasing client's working capital availability. Unlike banks, our PO Financing Lenders provide
funding for inventory in transit. Purchase Inventory to fullfill orders without drawing on your line of
credit at your bank.
Letters of Credit issued through the Purchase Order Financing Program do not block bank lines or
reduce your line of credit. Receive incremental cash flow from sales that were foreclosed to you.
With the assistance of dedicated trade financie experts, Letters of Credit are issued quickly, without hassle or red tape.
Transaction Size: $100,000. - $5,000,000., $30,000 minimum considered with multiple transactions.
Transaction Type: Firm non-cancellable Purchase Orders from creditworthy companies for
finished goods shipped directly to the client's customer or a third party warehouse.
Companies that benefit from the Purchase Order Finance Program:
All small to mid-size business are different. And all liquidity needs are different. In some cases, our
clients might have customer order and need capital to manufacture or produce the order. For these
scenarios, Our Direct Lender can help by providing purchase order financing.
Lender's purchase order financing is similar to our factoring facilities except the funding is used to
finance prospective activities in your value chain such as manufacturing and shipping. Purchase
Order Financing finances obligations between the client and their supplier or manufacturer, not the
client and their buyer.
EVERY PURCHASE ORDER FINANCING TRANSACTION REQUIRES THREE PARTIES:
Seller/Distributor – Our client
Buyer – Will purchase our client's product via a verified purchase order
Manufacturer – Will make and deliver the product to client for later re-sale
A TRADITIONAL PURCHASE ORDER FINANCE TRANSACTION HAS THE FOLLOWING
Buyer agrees to purchase product from Client. No products have been delivered.
Manufacturer will make the product, but requires payment up-front or a letter of credit.
Client presents CapFlow a verified purchase order from Buyer.
CapFlow completes credit due diligence and funds the manufacturing of the product.
Manufacturer delivers product to Client.
Client delivers product to Buyer.
WE PUT YOU IN DIRECT CONTACT WITH THE LENDER.
CONTACT US AND SEE HOW WE CAN HELP