Here at American Prudential Capital, we offer Purchase Order (PO) financing as a way for wholesalers that receive large purchase orders from clients to fulfill the orders when funds are tight. As an alternative funding company, we will lend you the money you need to pay your suppliers, and once your customer has paid your invoice, you simply pay us back. This means that your money is not tied up with paying for the supplies before you’ve sold them. You’ll also create a sense of goodwill with your clients, and we earn a fee for financing the purchase order.
How does PO financing work?
If you’ve received a large purchase order from a client, it’s generally a sign that all is going well with your business. However, sometimes a large order can become a bit of a nightmare, especially if you don’t have the financial resources to pay your suppliers. Not only will this result in disappointing your client, and perhaps losing the order altogether, but it could lead to credit problems with your suppliers in the future.
While all small businesses look forward to the day when they receive large orders, fulfilling them can be very expensive. Suppliers often want immediate or advance payments, especially if you’re a relatively new customer. You’ll often find that you’re caught up having to prepay your supplier and yet you’ll have to wait anything from 30 to 90 days for payment from your customer. Few small businesses can sustain this.
PO financing is a very simple process
By choosing to use our PO financing option, we’ll provide the money you need to pay your suppliers upfront, allowing you to fulfill your orders. The whole process follows a very simple structure: once in receipt of a PO from your client, you place your order with your supplier. We then pay your supplier so that they can fulfill your order. Once your client has received, accepted and paid for their goods, you simply pay us back. This option is available to all small companies, particularly government contractors or companies that resell third-party goods or use a third-party manufacturing company, and it is a very quick process to set up.
Setting up PO Financing may take a couple of weeks as we complete the due diligence process, however subsequent transactions are usually funded within a matter of days. Nevertheless, it’s much easier to obtain than bank financing, and the line can grow as your revenues increase. Traditional funding companies are often reluctant to help small businesses with no proven track record, whereas we take each and every business on its own unique merits.
Peace of mind that you’ll be able to fulfill that large order
Our PO Financing offers small businesses like yours the peace of mind that you’ll be able to fulfill that large order, and really springboard your business. To find out more about whether you’re eligible for help with purchase order financing, simply give us a call and one of our knowledgeable and friendly staff will be able to answer all your queries.
When you find that traditional methods of lending aren’t working for you, American Prudential Capital will help you to realize your potential.