Advanced Funding Group
Purchase Order Finance
Purchase Order Finance
Purchase Order Finance can provide you with the required capital to fulfill your customer’s purchase order. The funds provided are used for the explicit purpose of fulfilling the order and delivering the goods to your customer.
Purchase Order Finance works very closely with its clients to structure the financing so that each transaction is facilitated and completed within the terms and conditions of the purchase order, contract, or letter of credit. The relationship with our client is one of a partnership, limited to each transaction.
Purchase Order Finance can guarantee of pay up to 100% of your goods’ hard cost. Once the goods are shipped to your customer and delivery is confirmed, our factoring facility pays for the advanced purchase order portion.
With professionals and resources exclusively dedicated to purchase order funding and the international presence and expertise to set your cash flow free, PO Finance is the solution when new business opportunities exist.
A Typical Purchase Order Financing Transaction
- 1The customer submits an order to the seller (you) with all documents
- 2The seller submits the purchase order to PO Finance for purchase order financing.
- 3PO Finance pays seller’s suppliers directly to cover the hard cost of the Purchase Order. This payment may be in the form of a Supplier Guarantee, Standby, Letter of Credit, or Cash.
- 4The supplier delivers the materials to the seller or directly to customer
- 5Finished goods are delivered to customer
- 6The seller submits an invoice corresponding to the purchase order financed by PO Finance.
- 7The factoring company will purchase the invoice submitted by seller to customer.
- 8The Factor advances on the purchased invoice and pays the portion funded by PO Finance plus any fees due.
Frequently asked questions
Common questions about Advanced Funding Group programs. Call (267) 446-7902 for a personalized answer.
What is purchase order financing?
PO financing covers supplier and production costs to fulfill a specific customer order. Repayment typically comes from the resulting receivable or factoring proceeds.
What do I need to qualify?
A verifiable purchase order from a creditworthy end customer, proven fulfillment capability, and typically at least $50,000 per transaction.
Can PO finance work with factoring?
Yes. Many clients use PO finance to buy goods and factoring to advance against the invoice after delivery — a complete trade cycle solution.
Ready to get funded?
Speak with a funding specialist. No setup fees — funding in as little as 24 hours.