Purchase Order Funding and Supply Chain Solutions
Purchase Order Funding and Supply Chain Solutions
Purchase order funding provides the capital to pay suppliers for goods required to fulfill customer orders. Instead of borrowing you receive an advance to cover the cost of goods; repayment comes when your customer pays the invoice . This solution is particularly helpful when a growing business receives a large purchase order but lacks the funds to buy inventory. Benefits include:
- Supplier payments guaranteed – Funding is paid directly to suppliers ensuring timely delivery of materials .
- No traditional debt – Purchase order funding is an advance against a confirmed order so it does not add long term debt to your balance sheet .
- Rapid approval and scalability – Approvals typically take days rather than weeks and the facility can grow with your order volume .
- Flexible instruments – We can use letters of credit payment guarantees and revolving vendor trade credit facilities to support recurring orders .
- Payment Assurance Letters – Guarantee vendors are paid for goods ordered under a specific purchase order .
- Revolving Vendor Trade Credit Facilities – Offer ongoing payment guarantees and financing for recurring orders with the same vendors .
