Purchase Order Financing

Purchase Order Financing

Purchase Order Financing (P O Financing) can be easier to qualify for than traditional financing, while allowing you to retain full ownership and control of your business. Provided your business sells a tangible product to other businesses with a good track record of paying their bills, and provided you can show that your prospect for growth is good, then qualifying is easy, especially with purchase orders in hand.

How Does PO Financing Work? It’s simple. Say your company receives a large purchase order from a customer and you do not have the money to fulfill it. (As a business owner you know that you can’t afford not to fulfill it if you want to stay in business).  By using PO financing, your company can ensure shipment and delivery to the customer.

The Steps:

  1. Your Company receives a large Purchase Order from a Client.
  2. Goods are then ordered from your supplier and the finance company pays your supplier directly. (This is usually done with a Letter of Credit.)
  3. The customer gets their goods and pays the invoice to the finance company, which in turn takes their fee and then forwards the balance to your company.

Purchase order financing is available to new and established companies as long as business is growing and trending up.  The likely candidates are wholesalers, re-sellers or distributors.

Bottom Line: Purchase order finance allows companies to access the capital they need quickly and without restrictive qualifying standards. In most cases, you can start financing your purchase orders in a matter of days and as a result, grow your business and your bottom line.

Contact us today and one of our financial specialists will give you a no-cost analysis of what we can provide for your company.


R&R Commercial Lending
1230 Park Pointe Lane
Winter Park, FL 32789
Phone: 407-740-5166 • Fax: (321) 233-9936