Companies large and small can benefit from purchase order financing. Organizations in the manufacturing industry however, depend on PO funding more so than many other trades. From large manufacturers to small suppliers—limited cash flow can put a strain on business operations.
Purchase order funding for manufacturing allows manufacturers to acquire the materials they need to fulfill orders quickly without worrying about tight cash flow. Additionally, PO financing for manufacturing may even cover labor charges in certain situations.
Get the Financing You Need with STAR Funding
Helping businesses purchase raw materials and goods to manufacture products, STAR Funding offers flexible PO funding options that allow manufacturers to complete a job without putting their company at risk of depleting cash reserves. From Finished Goods Financing to Work in Process Financing, purchase order financing enables manufacturers to contract with larger customers even if they lack working capital.
Finished Goods Financing
Funding a PO for finished goods is the most common type of purchase order financing. Less risky, it involves the purchase of goods for resale that don’t require any assembly or customization prior to reselling.
Finished Goods Financing is highly preferable to typical short-term loans, as it typically comes with a much more favorable interest rate and turnaround time. This is our most popular type of funding for our manufacturing clients.
Work in Process (WIP) Financing
PO Funding for WIP involves purchasing components or raw materials that must be assembled prior to selling to the end customer. Much more complex than finished goods financing, the risk is much higher. Additionally, the standard costs of work in process PO funding is greater.
However, work in process may not require 100% funding of raw materials, so the costs associated to the invoice may be significantly less than funding 100% of the finished product cost.
Applying for Purchase Order Financing
Obtaining the financing you need to grow your business is easier than you think. Regardless of the PO funding type you require, our knowledgeable team will work with you to ensure your needs are met. After a quick review of your current or projected transactions, STAR Funding can provide an answer within minutes. Get started today!