Purchase Order Funding

Purchase Order Financing

Purchase order finance (also called purchase order funding or po financing) is an advance on your customers purchase order to pay for 100% of your supplier costs. PO funding is for the cost of goods sold and funds are paid direct to your supplier via wire (local) or letter of credit (import). Once the goods are delivered to your customer, the funding company will factor the invoice and issue a 2nd advance of funds directly to you less the PO funding advance and PO funding fee (called invoice factoring). When your customer pays their invoice, they will send their check to Security Business Capital. Security Business Capital will then deduct their advance and the discount fee and net you the difference. 

PO Funding Process

Purchase order funding is done on a purchase order by purchase order basis. You cannot use PO funding to purchase inventory to sell at a later date. Security Business Capital will consider your customers business credit and payment terms as part of the underwriting process as well as your supplier’s ability to produce according to the time line and customer terms. Security Business Capital will require a 1st position UCC filing on your inventory and your accounts receivable - they cannot fund if there are any liens, levies or judgments attached to this collateral or if your business is not profitable. There is no minimum personal credit score required or minimum number of years in business required. Purchase order financing is not a loan and doesn't add debt to your business.

At Security Business Capital, we cater to all types of industries, including:

How Purchase Order Funding Can Benefit Your Business

The advantage of securing PO financing with Security Business Capital is we dedicate the time to customize a program to your unique needs. Based on your business’ situation, Security Business Capital structures a letter of credit to your suppliers for the pre-sold inventory. Security Business Capital is committed to getting you a quick response and fast action to help your business.

Who Can Benefit From Purchase Order Finance?

  • Start-up companies
  • Companies growing more quickly than their available credit
  • Companies in turnaround mode
  • Companies in bankruptcy or being reorganized

Purchase Order Funding ensures your business has the funds it needs to thrive and strive. Get started today

Security Business Capital PO Financing Fuels Your Business Without the Stress of Traditional Financing!

Welcome More Business and Minimize Cash-Flow Concerns

PO financing helps your business stay ahead of the competition by providing vital cash-flow. Less time is spent worrying, and more energy can be focused on pursuing new customers and contracts.

Ultimately, our flexible PO financing solutions allow you to:

  • Purchase inventory without drawing on your line of credit
  • Focus on your company's income potential, not merely your current financial statements
  • Increase revenue without the endless requirements and stress of traditional financing



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