Purchase Orders and Invoice Financing
What Is It?
Invoice Financing (also known as Purchase Order Financing) enables your business to receive funds based on the value of your accounts receivable and payables. This type of financing enables you to slow pay your accounts receivable. Invoices can be sold to a factoring company in exchange for an immediate payment to the business.
How Does it Work?
It’s common for factoring transactions to be structured so that you are paid 80% of the value of an invoice upfront. The business receives the remaining 20% (minus the finance fee) once the customer pays the invoice in full.
What Are the Advantages?
- Cash flow is improved to put you in a better position to pay business expenses
- It’s easier to extend payment terms to customers
- It’s easy to qualify
- Funding can be deployed relatively quickly, about 1 week
- It’s available to small businesses that don’t have lots of assets or a long credit history
You Need Cashflow
- Can’t Sleep At Night?
- Don’t have enough cashflow
- Haven’t been in business long enough
- No collateral
- Poor credit history
- Your bank isn’t moving fast enough?
Don’t Wait, Get The Cash You Need!