💡 Summary #
Purchase Order (PO) Financing helps your business fulfill large customer orders when you don’t have enough cash or supplier credit.
Factor & Fund pays your supplier directly so you can complete the order – you get paid when your customer pays. It’s fast, flexible, and keeps production moving without loans or debt.
⚙️ How It Works #
- You receive a confirmed purchase order from your customer.
- You send that PO and supplier quote to Factor & Fund.
- We pay your supplier or manufacturer on your behalf.
- The supplier delivers goods or services to your customer.
- Once the customer receives the invoice, you can also factor that invoice for immediate cash.
📈 Why Businesses Use PO Financing #
- Fulfill Large Orders: Accept new contracts without cash flow stress.
- Protect Relationships: Pay suppliers on time and keep delivery schedules intact.
- No Debt: It’s not a loan – repayment comes from your customer’s payment.
- Grow Confidently: Handle bigger opportunities even if cash is tied up.
- Combine with Factoring: Fund the supplier upfront and get paid early when the invoice is issued.
🧾 Example #
| Purchase Order | Supplier Cost | Customer Payment | Outcome |
|---|---|---|---|
| $200,000 PO | $140,000 supplier cost | $200,000 due in 45 days | Factor & Fund funds $140,000, you profit from the $60,000 – our “fee” margin once paid. |
❓ FAQ #
How is PO financing different from invoice factoring?
PO financing funds the production or purchase stage before an invoice exists. Factoring provides cash after the invoice is created.
Who qualifies for PO financing?
Businesses with verified purchase orders from strong, creditworthy customers (buyers).
Can I use both PO financing and factoring?
Yes. You can use PO financing to fulfill the order and then factor the invoice once it’s issued — maximizing your cash flow end to end.
