What purchase order financing actually is
Purchase order financing — P/O financing — funds the cost of fulfilling a confirmed customer order before you have invoiced anything. Rather than advancing cash into your account, we pay your supplier directly, which is what allows the goods to move without the money first having to exist on your balance sheet.
That direct-to-supplier structure is the whole point. The classic failure it prevents is the one every growing distributor knows: winning an order you are fully capable of delivering, and losing it anyway because the supplier needs 100% upfront and your customer pays in 60 days.
We fund up to 100% of supplier cost, and typically look at orders from $100,000 upward.
We finance U.S. deals only. Your business must be organized and operating in the United States, and the purchase orders being financed must be owed by U.S.-based customers. If your company is based anywhere else, we are not the right lender for you — and we would rather say so here than waste your time.
How a funded order runs
- You win a confirmed order from a creditworthy U.S. customer. Confirmed matters — this is funded against a real order, not a forecast.
- You bring us the order and your supplier quote. We assess the strength of your customer, the reliability of your supplier, and the margin in between.
- We pay your supplier directly so production or shipment begins.
- You deliver the goods and invoice your customer exactly as you normally would.
- Your customer's payment repays the facility. If waiting out that payment is itself a problem, A/R financing bridges it.
What makes an order fundable
Because the order is the collateral, underwriting looks at the deal rather than at your credit history. Three things carry most of the weight:
- A confirmed order from a customer who can pay. Your customer's credit is doing the work here, which is precisely why your own tax returns matter far less than they would at a bank.
- A supplier who can actually deliver. We are paying them before anything ships, so their ability to perform is part of the underwriting.
- Enough margin in the order to carry the cost of the financing and still leave the deal worth doing. If the numbers do not work, we will tell you rather than structure something you will regret.
Who this is built for
- Wholesalers and distributors taking on bulk orders that exceed their working capital.
- Manufacturers needing materials before production can begin.
- Importers covering supplier deposits and freight, where cash goes out months before revenue comes in.
- Companies holding government and enterprise contracts — the orders you cannot say no to, from customers who set the payment terms unilaterally.
The common thread is a company that has already done the hard part. You found the customer, won the order, and know how to deliver it. The only missing piece is the cash that sits between those two facts.
P/O financing versus A/R financing
The two products solve adjacent problems separated by a single event: the invoice.
- Purchase order financing comes first. It funds the cost of fulfilling an order you have won but not yet delivered. Nothing has been invoiced.
- Accounts receivable financing comes second. It advances up to 90% against invoices you have already issued for work already delivered.
Plenty of businesses run both on the same order, and they chain cleanly: P/O financing pays the supplier so you can deliver, then A/R financing bridges the wait for your customer to pay the resulting invoice. If you are not sure which one your situation calls for, describe the order on the first call — that question takes about a minute to settle.
Why not just use a bank?
If you qualify for a bank facility and can wait out the timeline, you generally should — it is cheaper capital. The trouble is that purchase order problems are urgent by construction. Your customer has a delivery date and your supplier has a lead time, and neither accommodates a 30-to-90 day credit decision.
We issue a term sheet within 48 hours of a complete file, and most facilities go from term sheet to first funding in 3 to 7 business days. Banks also underwrite two-plus years of profitable returns and heavy personal collateral, which excludes exactly the fast-growing companies that hit purchase order constraints most often.
What we need from you
No 60-page application and no black-box scoring. To quote an order we need:
- A short application
- The purchase order itself
- Your supplier quote or cost detail
- Basic financials
Most clients submit everything in under 30 minutes. You will talk to an actual underwriter who understands your industry and gives you a straight answer. Submitting an inquiry does not pull your credit.