Purchase
Order funding
Purchase
order funding is a service for businesses
that are having difficulty filling orders
because of larger than expected demands.
This can occur for businesses that manufacture
goods, or provide services. The amount
of funding available is determined on the
amount needed to produce, insure, and ship
the goods or service not on the amount of
the invoice. The purchase order must be
non-cancelable and from a strong creditworthy
customer.
Purchase
order funding fees are higher and the
advance is lower than with accounts receivable
funding because there is greater investment
risk. Thus, first examine the possibility
of AR funding as it can often give the
needed cash and is somewhat less costly
than PO funding. When AR funding is
not available, PO funding can be the answer.
If a business
is not able to promptly fill a customer's
purchase orders, it can be in real danger
of losing those orders and profit. Worse
yet is the potential loss of any future
orders from that customer. If you are in
this situation, do not miss the opportunity.
Capital Logic will get you the funds necessary
to fill the order.
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