Purchase Order Funding

Purchase Order Financing

Purchase order finance, also called purchase order funding or PO financing, is an advance on your customers' purchase order to pay for 100% of your supplier costs. PO funding is for the cost of goods sold and funds are paid directly to your supplier via wire (local) or letter of credit (import). Once the goods are delivered to your customer, the funding company will factor the invoice and issue a 2^nd advance of funds directly to you less the PO funding advance and PO funding fee, called invoice factoring. When your customer pays their invoice, they will send their check to Security Business Capital. Security Business Capital will then deduct their advance and the discount fee and net you the difference. 

PO Funding Process

Purchase order funding is done on a purchase order by purchase order basis. You cannot use PO funding to purchase inventory to sell at a later date. Security Business Capital will consider your customers' business credit and payment terms as part of the underwriting process as well as your supplier’s ability to produce according to the timeline and customer terms. Security Business Capital will require a 1^st position UCC filing on your inventory and your accounts receivable, they cannot fund if there are any liens, levies or judgments attached to this collateral or if your business is not profitable. There is no minimum personal credit score required or a minimum number of years in business required. Purchase order financing is not a loan and doesn't add debt to your business.

At Security Business Capital, we cater to all types of industries, including: