Let Purchase Order Financing Help You Land That Next Big Sale
A customer calls and he wants to place a large order. Problem is – you are short of working capital to get the inventory/ product in. Your present lending source (bank/factor) can’t help. What can you do to not lose the sale? Purchase Order (P. O.) financing might be your answer.
Some of the key things the P. O. financing source needs to know early on are:
- Who are you buying from? What and where are you buying from? (Copy of P.O.)
- Who and where are you selling to?
- Is product being dropped shipped to the customer or will it be sent to a warehouse/storage facility?
- Are the goods – finished goods or is there some assembly/alterations needed?
- What is the Gross Profit margin?
- Who (bank/factor) will be taking out the P. O. financing source when an invoice is created to complete the transaction?
With this information and a completed application, the approval and due diligence process can move forward quickly – generally in days. So don’t forget to consider purchase order financing when there are sales that cannot be supported internally.
We will be happy to answer any questions you might have.
Tom Toman, Vice President of Sales