Purchase Order Finance – purchasing power to pay your suppliers

Purchase Order Finance offers your business the purchasing power to pay your suppliers for confirmed orders from quality debtors.

• Funding of goods against confirmed orders
• 100% supplier payments including Duty & Vat
• Letter of credit facility
• No impact on existing funding arrangements
• Repayment via debtor finance
• No turnover/net worth criteria

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?

• Provides additional purchasing power without using your own funds
• Flexibility – use the facility as and when you need it
• Does not impact on existing funding arrangements
• Ideal “top-up” finance if you’ve reached your limit with the bank
• Facilitates opportunity purchases and seasonal business
• No net worth criteria therefore suitable for young or fast growing companies