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Purchase order financing in a work environment

Purchase Order Financing

What is Purchase Order Financing?

Purchase order financing is a form of alternative financing that is the funding of purchased or manufactured goods when the client is unable to meet the financial burden of pending orders. This is an effective alternative when sales outweigh the current working capital. Especially in areas that contain different sales margins throughout the year.

Often times, customers want payment extensions (ex. 90 day term), while suppliers expect immediate payment on purchase or delivery. This along with overhead costs of running a company can completely drain working capital.


Get Started Today! Rates start as low as 0.75%. Click Here for more information contact us by email info@ablebusinesscredit.com or phone at 1 (855) 800-5525. We help businesses across Canada get the financing they need!

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Why Would I Need Purchase Order Financing?

It allows your business to finance orders that may have large overhead. As many businesses allow their clients to have 30-60 day payment terms, they also have their own bills to pay and for the most part these terms do not match. This can put a squeeze on cash flow and affect other parts of the business. So if you have order’s that are confirmed but lack the capital to manufacture them, then this may be the answer for you!

How it works?

  1. Issue a letter of credit.
  2. The supplier delivers the product.
  3. You invoice the customer.
  4. We collect invoice payment.
  5. We return balance minus funder fees.

To find out if this great form of alternative financing is right for YOUR business, please feel free to email us or give us a call at 1-855-800-5525.