Purchase Order Financing

Transform your outstanding purchase orders into cash today.

What Do You Need to Qualify?

BoomCityFunding.com Offers the Best Small Business Financing

No Time in Business Required

$100,000 in Current Invoices

No Minimum Credit Score

What is Purchase Order Financing?

Your customer’s invoice is overdue, and you’re still waiting on their payment. But your supplier is waiting for your payment, and you can’t risk paying late or ruining your relationship. Regardless, your packaging, shipping, product, and labor costs must be met.

Does this situation sound familiar?

Purchase Order Financing is a funding solution that helps businesses buy the inventory they need to complete customer orders. With Purchase Order Financing, you can ensure your orders are fulfilled and that your customers are satisfied even when you don’t have the working capital readily available.

In order to take advantage of purchase order funding (also called invoice factoring), you first need to present proof of the delivery and acceptance of the goods, while invoicing your financier for the goods at an agreed-upon discount. Then, the lender invoices your buyer for the full amount, collecting the payment according to your agreed-upon terms.

After receiving the payment, the balance is paid (less applicable administration fees and the cost of money used). The process for non-finished goods differs slightly, as it involves the seller taking possession of the goods in an unfinished state. Purchase Order Financing is the ideal funding option for businesses that require the cash flow to fill orders, while avoiding a tarnished reputation in the process. It’s also easier than bank financing, as it hinges on the creditworthiness and financial strength of the invoiced company, rather than your own. The Purchase Order Financing process has never been so fast, simple and easy! All you need to do is sell your customer’s purchase order in exchange for the capital you need.

How Does Purchase Order Financing Work?

Purchase Order Financing is pretty straightforward. The entire process can be broken down into 5 simple steps. Let's take a look at how Purchase Order Financing: Step 1: Receive an order. Your customer will submit an order, and you’ll decide whether or not you have the cash flow at hand to fulfill it. If not, Purchase Order Financing may be a good fit. Just make sure to have your supplier send you an invoice for the estimated cost of the order, so you’ll know exactly how much funding you’ll need. Step 2: Apply for Purchase Order Financing. Contact your lender about your situation and to review Purchase Order Financing options. Depending on your qualification requirements, you may be able to secure up to 100% of your supplier costs. If not, you may have to put down between 10% to 20% of your own funds. Step 3: Your supplier fulfills the order. Your Purchase Order Financing company will pay your supplier, who will then fulfill your customer’s order. In most cases, the supplier will also deliver the products directly to the customer. Step 4: Your customer pays the Purchase Order Financing company. Your customer will pay the Purchase Order Financing company directly for the goods they receive. Keep in mind that the faster your customers pay, the faster you’ll get your share of the profits in return. Step 5: The Purchase Order Financing company pays you. Once the Purchase Order Financing company receives the payment, they’ll deduct the fees and forward you the remaining balance. By looking past low credit to see the “big picture,” BoomCity can help you qualify for a program that makes sense for your business, helping you obtain funding before your opportunity passes.

Unlock the Lowest Rates, Longest Terms, and Highest Amounts

Financing Amount

Up to 90% of the PO

Flexible Terms

Ongoing

Time to Fund

3 - 7 Days