Purchase Order Financing
Purchase Order Financing is a financing option for companies that lack the funds needed to fulfill customer orders. Cash flow problems exist for many businesses, making it difficult to cover the costs of their purchase orders. Rather than turning away business, PO Financing allows your company the flexibility to fund a project with little to no upfront capital.
Webb Capital Advisors works with lenders that will provide your business with 100% financing on Purchase Orders and access to the working capital needed to grow at an unlimited pace. We oversee and fund the fulfillment of orders each step of the process, from manufacturing, to shipping, and the delivery of the order to your customer. Once your customer receives their order and an invoice is sent, the financing facility then transitions into an Accounts Receivable relationship. Meaning, you would be advance the amount of the order invoice to you, so your company has immediate working capital, rather than waiting to receive payment from your customer.
How does it work?
Once a valid Purchase Order is obtained from your client, funding can begin within a matter of days. As long as the company you are doing business with is of a high credit quality, we will not cap the amount of funding you can receive or limit your growth. This allows you to focus on sales and move your business forward without any concern about how you will obtain the next round of financing. We monitor the fulfillment of purchase orders from start to finish. This is beneficial because having us as a third party verification of processes ensures quality and mitigates risks throughout the manufacturing, shipping, and delivery process. Once your order is completed and delivered, you may not receive final payment from your customer for 30 to 90 days.
Purchase Order financing allows you to retain ownership by not giving up equity to individuals, private equity groups, or venture capitalists. Once a valid Purchase Order is obtained, the lender can advance working capital based on the face value of the purchase order, thereby eliminating the need for equity investors in your company.
How does it benefit your business?
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Save time and money with a third party managing and making payments to the manufacturer on your behalf
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Deal with just one company from initial product creation to final payment
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Challenged credit is a non-issue
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100% financing on purchase orders
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Working capital is sent to vendors within 24 hours of generating a purchase order
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Same day approval/closing in 2-5 days