Purchase order financing
Fund supplier costs to fulfill large customer orders.
Purchase order (PO) financing pays your suppliers directly so you can fulfill orders you otherwise could not afford to produce. Once the customer pays, the financing is repaid, ideal for Texas distributors, importers, and manufacturers landing oversized orders from creditworthy buyers.
What financing typically looks like.
Ranges are indicative. Final structure depends on your business profile, lender criteria, and current market conditions.
- Coverage
- Up to 100% of supplier cost
- Fee
- 1.8% to 6% per 30 days
- Facility size
- $50K to $25M
- Time to fund
- 5 to 10 business days
- Collateral
- The PO and resulting invoice
- Accept larger orders without straining cash flow
- Supplier paid directly, often with letters of credit
- Approval focused on the end customer's credit
- Pairs naturally with invoice factoring after delivery
- Verifiable PO from a creditworthy buyer
- Gross margin typically 20%+
- Identified supplier with delivery capacity
- Customer credit and supplier verification
Ideal use cases
Distributors and resellers, importers and exporters, manufacturers fulfilling large B2B or government orders.
Common questions about purchase order financing.
How is PO financing different from a line of credit?
A line of credit is general purpose. PO financing funds specific transactions and the lender pays your supplier directly.
What margin do I need to qualify?
Most PO lenders look for at least 15 to 20% gross margin to cover financing cost and leave profit.
Do you finance services or only physical goods?
PO financing is almost always tied to physical goods with verifiable suppliers. Services typically use factoring or working capital loans.
Ready to apply?
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