How PO finance works
You receive a verified purchase order from an credit-approved end customer. The lender funds supplier or manufacturer payments — often 100% of cost of goods. Goods ship; you invoice the customer as usual. Customer payment retires the PO advance; you keep the margin.
- You receive a verified purchase order from an credit-approved end customer.
- The lender funds supplier or manufacturer payments — often 100% of cost of goods.
- Goods ship; you invoice the customer as usual.
- Customer payment retires the PO advance; you keep the margin.
Typical requirements
PO from a creditworthy buyer (factor runs commercial credit checks) Proven supplier or factory with track record Margin typically 20%+ on the transaction Clear fulfillment timeline
- PO from a creditworthy buyer (factor runs commercial credit checks)
- Proven supplier or factory with track record
- Margin typically 20%+ on the transaction
PO finance + factoring
Many deals combine PO funding for the buy with invoice factoring on the resulting receivable — a full working-capital stack for high-growth suppliers.
Learn more about purchase order finance at AFG .