Purchase Order Financing

Purchase order financing can be a great solution for your short-term financing needs. It’s used for the purpose of financing the purchase or manufacture of products that have already been sold. This process is possible through the issuance of letters of credit or additional guarantees from an external player to your financial institution. The goal is to secure the necessary inventory to meet your pending orders.

Through the financing of purchase orders, it’s possible to support local and international transactions. The additional working capital thus generated provides significant flexibility for some important orders that you cannot miss. Obviously, this type of financing will allow you to increase your sales and take advantage of profitable opportunities greater than those you can normally afford.

Purchase order financing is used by manufacturers, distributors, importers, and exporters. It can be used to pay product suppliers, to issue letters of credit, to pay for labour, raw materials, or other related expenses.

For what reasons should an entrepreneur consider PO financing?

  • For the acquisition of goods and raw materials
  • To cover expenses related to the payroll
  • To take advantage of wholesale discounts
  • To meet its seasonal financial needs

The benefits are numerous:

  • No penalty for prepayments
  • No long-term contract
  • Short turnaround time after receipt of relevant documents
  • Minimal restrictions as to the use made of advanced money

Your mortgage broker

Your mortgage broker will be your ally in order to obtain:

  • The highest percentage of financing to reduce your down payment
  • The longest amortization to reduce the impact on your cash-flow
  • The lowest possible application fees
  • Negotiating the best financing conditions on the market