factor an order

My good friend at Wells Fargo, Roger Welker made this comment after my last blog: “Invoice Factoring versus Purchase Order Funding” – he gets calls all the time asking if his company can “Factor my Order”.

Well, the short answers are no, but let’s look at the reasons why. First, you get an order to install fiber optic cable or supply temp staffing to a large creditworthy client. Congratulations! But you realize you don’t have the money to start the job or supply the labor.

Well, what options are available to you? How about Factoring? Since invoice factoring is advancing monies against or the selling of your accounts receivables and in both the examples above you just have an order for services. Remember no asset has been created until you complete the order, so traditional Invoice Factoring is not quite the right fit.

Now you might be able to work out with your client and a factor (like businesscash.com) to complete part of the order so you can create a smaller invoice to get funded. You also might be able to utilize a Vendor Guarantee to get you some working capital. Businesscash.com can be creative so call or email us with your unique situation.

Now, what if you are supplying a true product like shirts, tires, buggy whips, etc? Well PO Funding can be utilized. With PO Funding or Inventory financing, your supplier can be paid or a payment guaranteed. The goods then get shipped to your client. Businesscash.com can fund the subsequently created invoice. The monies already advance to pay your supplier are deducted and you get the balance of the advance to fund your business.

To answer any questions you have about “Funding your Order” please call or email us.

Want funding that is credit protected? Call 866-598-4295 or use the fast, safe & secure online-funding application.



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