International Purchase Order Finance
Our Purchase Order funding program can provide you with additional working capital to fulfill your customers' orders. Having the extra purchasing power gives you the ability to take on larger orders and increase your profits. Whether you need to purchase the goods locally or from across the globe, our funding source has the expertise to assist you through the process.
Up-Front Funding
Purchase Order Funding can help you when you have a confirmed order from a credit-worthy customer, but lack the funds to fulfill it. This approach allows you to capitalize on new sales and growth opportunities. Our funding source can guarantee or pay up to 100% of your supplier invoices. Once the goods are shipped to your customer and delivery is confirmed, your accounts receivable facility pays for the funds advanced to complete your order. Our funding source can provide letters of credit, standby letters, or credit and wire transfer facilities.
The Right Partner
International sourcing can bring extra complexities to your business. Having a reliable funding partner that understands the risks and logistics involved in dealing with international suppliers allows you to continue to provide your products in an appropriate and timely fashion.
Flexible Solutions
We understand that business models change, your products may be sourced internationally and sales could be seasonal. This is why our Purchase Order Funding Program is flexible and designed to accommodate different situations. Once set up properly and used in conjunction with accounts receivable financing, the Purchase Order Funding Program is available as needed with no minimum fees or contract period. These solutions include:
- Direct Funding: We can pay the supplier directly and take "ownership" of the goods.
- Bank Letter of Credit: A commitment to pay backed, by a bank institution primarily based upon the supplier providing the correct documentation.
- Bank Standby Letter of Credit: As above but guarantees payment from the client to the supplier. Both Letters of Credit are governed by the regulations of the International Ch amber of Commerce.
- Supplier Guarantee: A commitment by our Funder to pay cash generated from the receivable direct to the supplier.
Benefits
- You can fulfill bigger orders and avoid turning away purchase orders due to shortage of working capital.
- When letters of credit are used properly, they reduce business risk by assuring that the correct goods are delivered on time.
- It enables you to get better buying terms from your suppliers and build a stronger credit history with them.
- It complements your current financing by providing more purchasing power.