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Purchase Order Financing

Say yes to the order.

Purchase order financing pays your supplier to produce or deliver goods against a confirmed order from a creditworthy customer. When the goods are delivered and invoiced, the transaction is settled from your customer’s payment, often by moving the invoice into a factoring facility.

Apply NowHow purchase order financing works

How it works

Purchase Order Financing, step by step.

  1. Receive the order

    Your customer issues a confirmed purchase order for finished goods.

  2. Share the details

    Submit the purchase order, supplier quote and delivery terms through your account.

  3. Supplier is paid

    Once approved, funds are directed to your supplier to produce or ship the goods.

  4. Goods are delivered

    Your supplier delivers to your customer and delivery is confirmed.

  5. Invoice and settle

    You invoice your customer, and the transaction is settled when the invoice is paid or factored.

Is it a fit?

Well suited when

  • You resell, distribute or import finished goods.
  • Orders are larger than your current cash or credit can cover.
  • Your suppliers require payment before they produce or ship.
  • You sell to established commercial, retail or government buyers.

Transparency

What to understand

Built around a specific order
Each transaction is tied to a confirmed purchase order and the supplier fulfilling it.
Customer and supplier both matter
Decisions consider your customer’s credit and your supplier’s ability to deliver as promised.
Often paired with factoring
When the order is invoiced, the receivable can move into a factoring facility to settle the purchase order advance.

Industries

Where purchase order financing works well.

Questions

Common questions

Does purchase order financing work for services?

Purchase order financing is designed for finished goods. Service businesses are usually better served by invoice factoring once work is billed.

Who receives the funds?

Funds are typically directed to your supplier rather than to your business, which keeps the transaction tied to the order.

What happens after delivery?

You invoice your customer. The invoice is either paid directly or factored, and the proceeds settle the purchase order advance.

Read: Factoring, asset based lending or purchase order financing?

Put your receivables to work.

Start with a secure digital application. We will review your business and talk through the structure that fits.

Apply NowSee how it works