Graco Mortgage

Purchase Order Financing

 

Contact us:   970-663-7306 

 
Loading

Are you a product reseller and need capital to deliver a large purchase order? Purchase order financing can provide you with the working capital you need to deliver your large orders and grow your business.

 

Resellers face the constant dilemma of suppliers that want advance payments and clients who pay for your goods in 30 days or more. This problem ca be solved with purchase order funding.

 

 

How does it work?

 

Purchase Order financing covers the supplier expenses associated with a specific purchase order. It enables you to make sales that exceed your current financial capabilities and provides a solid platform for growth. When used properly, purchase order financing can help you grow your company by enabling you to accept large orders.

 

 

Purchase Order financing is simple to use and integrates into your business easily. It works like this:

1. Your client issues a purchase order to your company.

2. We pay your vendor on your behalf, usually be letter of credit or bank wire.

3. The goods are delivered and accepted by your customer.

4. Your client pay the invoice and the transaction is settled.


To Qualify you must:

* Have a minimum of $50,000 in monthly sales.

* Buy finished goods from a 3rd party and resell them.

* If your company develops products, you must use an outsourced (3rd party) manufacturing company.

* Transactions must have a minimum profit of 20%.


Benefits of Purchase Order Factoring

* Purchase order funding can help you take large orders and close big sales.

* Available to established companies and start-ups.

* Purchase order funding can provide up to 100% of the financing necessary to pay your local or foreign suppliers.

* Grows with your sales.

* Purchase order financing is easy to obtain and can be set up in days.

 

Obtaining purchase order funding is faster and easier than obtaining traditional bank financing. The main requirements are that you run a profitable business and have purchase orders from reputable customers. The cost vary based on the size of the transaction, the credit quality of your client and the lengthh of time that the funds are needed.