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Purchase order factoring – Grow and expand with your business.

Purchase order factoring, sometimes called “contract funding, is great for businesses needing financing during times of growth and expansion. Cash flow reserves often become insufficient, and additional financing sources are needed. The problem comes when suppliers want a business to pay upfront via C.O.D., and the buyers want to purchase the goods on net 30-60 day terms. This means there is no incoming cash during manufacturing while the goods are in transit, and until the invoices have matured.

Purchase order factoring solves this problem by paying for the cost of the goods directly to your supplier on behalf of the manufacturer or distributor. Purchase order factoring frees up your cash for other critical business operational expenses such as paying for utilities or marketing.

Before applying for purchasing order factoring there are several things that should be done. These include:

• Get a purchase order from your customer.
• Find a reliable supplier of your products.
• Place the order with that supplier.

To find a list of companies which can help your business obtain financing conduct a search in our free business funding directory. Simply tell us a little bit about your company, and we will help match you with a list of lenders that can help your company obtain the financing it needs.

No matter what type of financing your business is seeking you should have a good plan written down which shows you how much money is needed. Lenders like to know that you have a plan, and it will increase your chances of getting approved. 


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