With Purchase Order Finance, we take a transactional based approach to funding your business.
If you have firm orders, a solid customer and reliable suppliers, we can provide funding based purely on your opportunities.
How it works
By considering your purchase order/supply agreement /contract to be collateral, and providing a letter of credit straight to your supplier (cash deposits are considered in some circumstances). Your supplier will usually ship directly to your end customer (who must be a trustworthy, established business or government entity). When your customer makes payment, the transaction is settled.
General guidelines for funding Purchase Order Finance
Credit lines are available from AUD25,000-1,000,000 up to 180 day facilities.
- You receive a purchase order from your customer or supply agreement/contract
- We then verify with your customer the validity of the order/s
- We open a letter of credit/telegraphic transfer to your supplier and you drawdown on the purchase order finance
- Your supplier then ships the completed goods to your customer
- Your customer is then directed to pay for the goods
- We collect payment and remit the balance to you
- Australian based companies
- Distributors, manufacturers, wholesalers, import and exporters
- Need funding to assist with growth by completing orders and contracts locally or internationally
- Want Growth without increased bank debt or selling equity
- Need help with seasonal sales spikes that strain cash flow
As well as providing purchase order finance, we offer a suite of supply chain finance products to compliment your funding needs. Inventory Finance and Debtor Finance can assist with additional cash flow to help maintain growth sustainability. Learn more .
Interview the Product Specialist: What is Purchase Order Finance & Debtor Finance? (video)
Case study brochure: Electrical Wholesaler
White Paper: Purchase Order Finance (Trade Finance)