About Purchase Order Finance
Purchase Order Finance usually involves the purchase of a large quantity of goods from a manufacturer which are delivered directly to the customer (end user).  In the most common purchase order finance transactions, the goods are not shipped to the client for reprocessing or repackaging.  Purchase order financing should not be confused with inventory finance as in purchase order transactions, the purchase order finance company is a short term transactional lender only and must be "taken out" as soon as the goods are delivered.  the 'take out" is usually performed by a factor or inventory (asset-based) lender.

Contract Finance
Contract Finance is sometimes referred to as "mobilization funding".  It is required when a small or mid-size business is awarded a contract that is out of the normal size or one that will require an unusual amount of up-front money to purchase initial raw materials or to perform services.

Contract or "mobilization funding" requires that the borrower have an extensive history of being able to perform against the contract.  Additionally, the borrower must generally be exceptionally creditworthy.

FREE Client's Guide
For business owners seeking additional information on factoring and purchase order finance and whether it can benefit their business, we have reprinted the When Banks Say NO!...A Small Business Guide to Factoring in limited quantities. 

This informative twenty-five page booklet  provides a wealth of information on this most powerful financing tool. To order a FREE copy while they last, request it from our contact area or from the company profile form.
 

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 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.

Additional Sources of PO Finance

If you currently do not have a factoring facility established with Aegis Factors but are seeking financing for a purchase order, we can help.  As a primary funding source for small and large entrepreneurs, Aegis Factors maintains working relationships with some of the most established purchase order finance and contract finance companies in America.  We can assist you in your financing needs and establish your factoring facility at the same time. 

           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 Aegis Factor's underwriter directly at (239) 274-7990 or complete the online quick application. (click here) 
 

Member....International Factoring Association