Purchase Order Finance offers your business the purchasing power to pay your suppliers for confirmed orders from quality debtors.
How does it work?
You obtain a confirmed purchase order from a credit insurable customer and you notify the funder of the transaction.
The funder either opens an irrevocable Letter of Credit or makes direct payments to your supplier, on your behalf, for the purchase of finished goods.
The funder purchases the goods on your behalf and sells them back to you on credit. Repayment is via debtor finance or from proceeds from existing invoice discounting arrangement.
What are the key benefits?