Caypen Financial Purchase Order Financing

Purchase Order Financing

retail clerk Do you have a purchase order but no funds to buy the inventory? If so, you are a prime candidate for Purchase Order Financing. Funding your purchase orders using Purchase Order Financing (POF) allows you to accept purchase orders without capital availability.

POF is a good option for Companies that can’t get financing from traditional banks. With POF you can get 100% of your supplier costs. There is no limit to how much you can finance. Financing is based on the company’s sales, therefore no capital is necessary. POF is a great option for companies that sell manufactured products, i.e., distributors, wholesalers, and resellers . POF is an ideal tool for companies that sell third-party products and are growing quickly.

How does Purchase Order Financing work?

Purchase order funding is simple to use and once the account is set up you can use it to finance all current and subsequent orders. The process is very straight forward and works as follows:,

Your company is awarded a purchase order from a customer.
A letter of credit (or similar instrument) is issued favoring your supplier.
Your supplier ships the goods.
The order is delivered and accepted.
Your company issues an invoice to your client.
Your client pays the invoice.
The transaction is settled.

Qualifying for Purchase Order Financing is quick and easy.

To qualify for Purchase Order Financing, you must sell products to other businesses (or government agencies) who pay their invoices reliably in 90 days or less. Establishing POF line usually takes 5 to 10 days and most businesses can qualify, provided they have good customers and are well managed.