Purchase Order Funding, also known a Purchase Order Financing, is a great tool to finance your large purchase orders. Purchase order loans are also a great solution for companies with cash flow problems. Star Funding can pay suppliers for the purchase of goods for resale based off of an existing purchase order.
Please continue reading for the most up to date information on purchase order lending and trade financing to support your business. When a traditional business loan or line of credit can’t support your needs, this is a great option. If you are wondering what is po financing, then keep reading below.
Businesses can utilize Purchase Order Funding and factoring to finance up to 100% of the purchase cost of goods for resale. If goods are being produced in-house, STAR Funding will consider Work In Process PO Financing. WIP funding covers the costs of components from multiple vendors.
How Does Purchase Order Financing Work?
You will find a lot of options when looking for po financing to support your cash flow. Most po financing companies will require an accounts receivable factoring company to help collect (invoice factoring) against the resulting account receivable. Star Funding handles both in house. This way you receive the best purchase order financing rates and.
Purchase Order Financing works as a transactional form of financing. It permits the entrepreneur to spend more time on marketing, sales and manufacturing, rather than raising additional capital to finance growth. With each new transaction, STAR builds a closer understanding of the client’s business. This builds confidence and leads to a strong relationship between the client and STAR.
There are two basic types of PO Funding, namely: Funding Finished Products and Funding Work-In-Process.
Most finance companies will only consider Finished Products. STAR, however, will consider both depending on the structure of the transaction, and experience of the entrepreneurs. A transaction is considered Work In Process when the client requires STAR to purchase components for assembly in house or through a 3rd party.
How do you apply for purchase order funding?
PO Funding allows businesses to feel confident that they can service their creditworthy customers. No more turning down large orders due to lack of working capital. With Purchase Order Funding businesses can be more proactive towards winning large orders from their customers. You no longer have to worry about how to meet customer demand.
Applying for Purchase Order Funding or AR Factoring is simple. Contact us today to begin reviewing your transactions. After a quick review of your current or projected business operations STAR can provide an answer in minutes.
It’s never too early to start planning for Purchase Order Funding. The interview process is short. Star Funding, known as one of the top po financing companies and factoring companies. We offer a streamlined due diligence and on-boarding process so the funding happens quickly.
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PO Funding FAQ
Will PO Funding work for international business funding? Yes, PO Funding is globally recognized as an easy and affordable way to finance the production and sale of product internationally.
How can I qualify for Canada purchase order funding? You qualify for po financing Canada the same way you qualify to finance a purchase order China based. As long as you have a reliable supplier and creditworthy customer. The same goes for po funding UK businesses.
How to get purchase order financing? Speak with a po funding or trade financing company today if you have a purchase order from a credit worthy customer.
Can I use purchase order funding for government contracts? Yes, PO Funding for government contracts is managed the same way it is for financing purchase orders from ordinary private customers.
Is PO Funding the same as PO Lending? Yes and no. Traditional Purchase order funding is not structured as a loan. It is a supply agreement where a finance company supports the purchase of goods for resale.
What is a good purchase order finance rate? Rates vary depending on the size and duration of a transaction. Typical rates can range from 2-5% per 30 day period.