Purchase Order Financing

WHO CAN BENEFIT FROM PURCHASE ORDER FINANCING:

  • Companies that re-sell finished goods and have limited trade credit.
  • Manufacturing companies that need to pay for materials prior to completing the manufacturing of products ordered by their customers.
  • Companies that have received purchase orders and are maxed out on their bank line of credit or Account Receivable Financing limit.
  • Companies with larger than normal purchase orders.

BENEFITS OF PURCHASE ORDER FINANCING:

100% OF CAPITAL REQUIRED

When you have Purchase Orders from credit worthy customers and your suppliers require payment in advance of their shipment of goods, we provide 100% of the payment required by your supplier to fill the order.

NO CAPITAL CONTSTRAINTS

If you have large credit worthy customers, you no longer need to be concerned about not having enough capital to fill orders. We set the Purchase Order Financing limit based on our credit underwiring of your customer, not on your company’s credit. With our financing in place, if you are a startup or do not have strong credit established, it does not affect your ability to fill large orders.

BID ON LARGE PURCHASE ORDERS

Since we are setting credit limits based on the credit worthiness of your customers, you can now have the confidence to bid on large orders that your cash flow would not normally support.

NO MORE LATE DELIVERIES TO CUSTOMERS

Since we are pre-paying your suppliers and they are committing to shipment by your customer’s required timeline, your customer can count on a timely delivery of the goods that they have ordered.

INCREASED TRADE CREDIT LIMITS

After your suppliers have received a number of pre-payments from us on your behalf, they are likely to increase trade credit limits with you. With a proven record of payments, suppliers may stop requesting pre-payment and your Purchase Order Financing costs will go to zero.

THE PURCHASE ORDER FUNDING PROCESS:

  • You submit a Purchase Order funding request showing the schedule of cash requirements needed to fill the order.
  • Applied Capital does credit underwriting on your customer and establishes a funding limit for the customer involved.
  • We verify the details of the Purchase Order with your customer.
  • We confirm that your Purchase Orders to your suppliers for materials that you need to fill the Purchase Order from your customer meet the specifications and time line required by your customer.
  • Applied Capital enters into an agreement with your supplier whereby we agree to pre-pay them prior to their shipment of materials and they agree to fill the terms of your Purchase Order to them.
  • Applied Capital advances 100% of your costs with suppliers via a direct payment to your supplier.
  • For our clients that are re-selling finished goods, the suppliers typically drop ship goods directly to our client’s customer.
  • For our clients that are manufacturing companies, the suppliers ship goods to our client.
  • After your customer receives the goods that they have ordered from you, you invoice the customer.
  • We verify that your customer has received the goods and that the invoice amount is correct.
  • We use an advance against the invoice (Accounts Receivable Financing) to “take out” the Purchase Order Financing. The funding against the related invoice is used to pay off the amounts advanced to your suppliers and the accrued Purchase Order Financing fees. Any additional funding available from the advance against the invoice is wired to you at this time.
  • Payment from your customer comes directly to Applied Capital.
  • When we receive payment from your customer, we deduct the advances that we have made and our fees and wire transfer the balance to you.

APPLYING FOR FINANCING IS QUICK AND EASY

APPLY NOW