What about Purchase Order Funding?

There are lenders that will provide loans to secure product from suppliers or to fund the manufacturing of your product. Purchase order funding, however, is a more complex process. The lender will require in depth information about your company, your supplier and your customer. Both you and your supplier must have a good track record. Most important is that you must have a firm purchase order from your customer that cannot be cancelled and the goods cannot be returned. Because of the risks involved, purchase order funding is more expensive than factoring.