What about Purchase Order Funding?

July 31, 2019

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.