Event Details
Purchase Order Financing 101: How Brands Can Get Extra Liquidity to Fuel Future Growth Opportunities presented by Rosenthal & Rosenthal
Wednesday, February 14 | 12-1 pm ET
Have a potential order that you can't take on without financing?
Are you at risk of missing out on a potential big sale?
Do you have no or limited credit with your suppliers or contract manufacturers?
Purchase Order ("PO") Finance is a short-term alternative inventory financing option that provides incremental working capital to cash-constrained businesses. PO Finance can be an excellent complimentary finance tool to an existing or newly established accounts receivable or factoring facility. PO finance is critical for growth now more than ever to support pre-sold inventory purchases from credit-worthy buyers. PO Finance can fund up to 100% of the COGS (inclusive of freight and duties) for pre-sold inventory purchases.
Utilizing PO Finance frequently supports and strengthens supplier relationships through timely payments. This type of financing may also be used for specific inventory purchases, as a carve-out within a company's normal purchasing process, allowing them to not turn away growth or seasonal business they otherwise may not be able to fulfill. PO Finance can be used for value-added finished goods purchasing as well as production financing, such as light manufacturing and assembly businesses. It is best suited for businesses (importers, distributors, manufacturers) with gross margins of 20% or higher and PO Finance is a great alternative to taking on additional equity and diluting your business.
