What is Purchase Order Finance?

Purchase Order Finance or "PO Funding" can be one of the more difficult types of commercial finance to secure for fast growing businesses. Factors, however, routinely provide some amount of purchase order finance as "pre-ship" invoice financing. Traditional purchase order finance is provided through companies that specialize in that transaction.

Our clients benefit from our established relationships with some of the largest providers of purchase order finance nationwide. While requirements and qualifications for purchase order finance will vary from lender to lender, some are relatively standard.

To qualify for purchase order financing your business generally must:

· have an established factoring relationship.
· not be re-packaging or simply creating an inventory with the product.
· have an established and acceptable credit history.
· be funding orders of significant size ($100,000 and larger).

Purchase Order Finance is an extremely powerful tool for importers purchasing goods from the Europe, the Pacific Rim, and elsewhere. In some instances, international factoring transaction can provide the necessary financing bypassing the more complex area of purchase order
finance. To discuss the availability of purchase order finance for your particular application, either contact an AZRogala REI, LLC representative directly or complete our online quick application/profile.

Purchase Orders for services to be performed, rather than goods to be delivered, are virtually never acceptable for typical purchase order funding. This type of finance is considered "contract finance" and is generally obtained through local commercial lenders such as banks or unique providers of such services.