Purchase Order Finance

Domestic – International – Import – Export

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.

2000-pexels-photo-572056

General guidelines for funding Purchase Order

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

Client profile

  • 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

Complimentary products

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.

grad-phone-sm

Contact us about funding now!

  • Anybody coming into the wine industry has to invest a lot in equipment. Return on capital in the wine industry is not great. Most of our customers are on open credit. So we invest in the inventory, we send it out, then we’ve got to wait 3-4 months before the money comes back in, so someone like AR (Cashflow)makes a big difference to us because a lot of that cash we can access immediately. There are a whole range of things that we can do to make things a lot easier for ourselves. Obviously outsourcing and minimizing capital investment is one thing, utilizing AR is another.

    Ian Yarraman Wines