What is Purchase Order Financing and PO Funding? Is it applicable to your business? Since 1998 we 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, we 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 we promise 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 we always look to your the client to receive payment. We need to make sure they have the product. Aside from that, we need to ensure that they are happy with the product. Finally, that they will verify they will pay Businesscash.com in a timely manner.