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What Are the Risks of Purchase Order Financing?

August 9, 2022 By Star Funding

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What Are the Risks of Purchase Order Financing?

There are some risks associated with purchase order financing. The initial risks are associated with the production and shipping of inventory. Additionally, if your customers do not pay for their orders, you may be responsible for repaying the loan plus fees. You can mitigate those risks with factory inspections and credit insurance on accounts receivable.

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