What is Purchase Order Financing and PO Funding? Is it applicable to your business? Factors have been offering this service to our clients in addition to our invoice financing product. If you are selling a product in its same state – let’s say you’re buying hard goods like t-shirts, cell phones, or steel. In this case, they can offer purchase order financing and PO funding. Many times it’s a product that is a consumer good.

How PO Financing and Purchase Order Funding Works?

PO funding works through a vendor guarantee, or a letter of credit and your vendor is going to receive payment. Your vendor ships the goods through a big box retailer or the government. Let’s say you have a $100,000 contract to pour concrete. Somebody gives you the money, what happens if something goes wrong and you don’t pour the concrete or the client isn’t satisfied? With factoring and PO funding, factors always look to your client to receive payment. Factors need to make sure they have the product. Aside from that, factors need to ensure that your clients are happy with the product. Finally, factors will verify they will receive payment promptly.

 

Get PO Funding today! Call 866-598-4295 or use the fast, safe & secure online funding application.

Rating: 5.0/5. From 2 votes.
Please wait...

Back to Top