Shaking Hands

PURCHASE ORDER FINANCING

This is "money to make money". Pre-delivery vs post-delivery. Purchase order financing can provide up to 100% of the cost of pre-sold goods, plus the associated costs of transportation, customs and duties. While faster, purchase order financing works more easily for existing, already transacting business rather than new business

When to Use

  • You have successfully presold a large quantity of product, are creditworthy and want to further optimise your cash position without having deploy it directly into production.

  • You have a private label brand with an exclusive supplier that is just starting to take off and business/chain store size orders are coming in. 

  • You are distributor who needs to purchase goods from an already reputable supplier you have a track record with to sell to another regional distributor

  • You are a contractor who needs equipment i.e. large order of computers/server farm to get a job done

  • You've just self financed a small order and demand is through the roof but larger financing is needed to scale production (possible but approval and diligence will not be quick)

Purchase order financing allows your business to fulfill purchase orders you wouldn’t ordinarily be able to accept if larger than your existing personal or business credit by leveraging the creditworthiness of your customers instead. 

 

OUR CREDIT CRITERIA

OUR CREDIT CRITERIA

While your financials are certainly a factor in our credit decisions, we take broader, non-traditional factors into consideration, including:

  • Existing business history

  • Management expertise

  • Quality of purchase orders

  • Reliable sourcing

  • Nature of goods financed

  • Repayment plan

  • Industry history and reputation

 

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