Non-Recourse Invoice Factoring versus Purchase Order Funding
By the number of calls we receive at BusinessCash.com, there is much confusion about Non-Recourse Invoice Factoring versus Purchase Order Funding. In this article, we will walk you through the steps of how each one them works. We will also tackle which type of companies each financing option applies. What is Non-Recourse Invoice Factoring? Non-Recourse Invoice Factoring is a financial agreement between your business and a factoring company for financing based on accounts receivables against cash. It is available to any company that bills...
read morePurchase Order Funding & Vendor Guarantees: Your Fast Way to Constant Working Capital
Satisfied customers are vital for any company to survive in the business world. To keep your customers happy, you need not only to have impeccable service but also the required goods available just in time (JIT). If you are a product reseller or distributor and need capital to deliver a large purchase order, then Purchase Order Financing can be a solution to fuel your business, deliver your orders, and grow your business. PO funding gives you the ability to have goods available for your clients even before generating an invoice. Likewise, this...
read moreFree On Board (FOB): A critical variable for the Purchase Order Financing of any shipped or imported goods
Free On Board is a trade term indicating whom of the seller or the buyer is liable for the goods while being shipped between the two parties. Frequent reference to this is FOB. In most cases, the supplier pays the shipping costs. This includes the insurance costs and covering fees from the production point to the delivery destination. Once delivered, the buyer is responsible for the goods. What does the Free On Board involve? FOB defines the supply chain point where the seller relinquishes ownership of purchased goods and where the buyer...
read moreBenefits of Purchase Order Financing
Are you are a product importer, jobber, reseller or distributor? Do you need capital to deliver a large purchase order? Purchase order financing is an excellent factoring program. It enables your business to get the working capital to deliver your orders. PO Financing is all about growing your business in ways that were not possible in the past. Benefits of Purchase Order Financing Purchase Order Financing (PO Financing) is not a loan PO Financing Pays Your Suppliers or provides them Payment Guarantees PO Financing allows you to...
read morePurchase Order Funding vs Invoice Factoring
For many business owners, cash flow can be a routine problem. It is no secret that businesses need cash to pay employees, buy supplies, and pay for shipping orders. So, where can a company get the funds it needs? Some try turning to purchase order funding instead of using invoice factoring. This is not always the best solution. Here is why. To begin, we must first understand that these are not the same. What is Invoice Factoring? Virtually any company that bills its creditworthy customers and clients can use Invoice factoring. However, it also...
read moreThe Ins and Outs of Purchase Order Financing
There is a general misunderstanding of Purchase Order Financing. Let us discuss whether it is applicable to your situation, also, on what you can do to qualify for Purchase Order Financing or PO Funding. You should distribute or wholesale a product Purchase Order Financing is designed to either buy the goods for you or give your vendor confidence that they will receive a payment if they perform properly. A PO Funder can write a letter of credit payable to your supplier, or they can give your supplier a Vendor Guarantee. Such vendor guarantee...
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