Purchase Order Financing

By: Green Capital Funding, LLC  03/20/2016
Keywords: business financing, Business Funding, Accounts Receivable Financing

Purchase order financing is for companies that have purchase orders from credit worthy customers but are financially unable to deliver the order. Purchase order financing lenders will often cover 100% of the cost of goods, however, they like to see a gross margin of 25% or better. Purchase order financing lenders typically take 4% to 5% of the gross margin of the order as their fee, however, rates can be less expensive for volume commitments. ​Purchase order funding companies will usually pay suppliers directly through a letter of credit or wire transfer. Some purchase order financing companies will take title to the goods while others just provide the funding. Purchase order funding companies will want to track the goods throughout the shipment and delivery process. Most lenders will also want to have ocean freight and land freight insurance in place with the purchase order funding company listed as the loss beneficiary. These lenders treat the goods as if they were their own as they have paid for goods and need to see them delivered to recoup their advance. Most purchase order financing companies avoid carrying any of the credit risk involved with the receivables, and will require the client to have a factoring facility in place so that they can be repaid once the goods are delivered.Purchase order financing is an excellent to tool to help businesses grow and is a good alternative to selling equity in the business. At Green Capital Funding, LLC We work with many well-capitalized lenders that are aggressively lending. Many of our clients, companies just like yours, can receive the working capital they need even in today's hard economic times. Turn your purchase orders into cash NOW, and gain the working capital and the peace of mind your company needs to succeed. Get a Free Quote Today from Green Capital Funding, LLC.

Keywords: Accounts Receivable Financing, business financing, Business Funding, Green Capital Funding LLC, Order Financing, Purchase Order Financing, Small Business P O Financing

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