Purchase Order Financing

Do you have orders from large, credit-worthy customers but lack the necessary funding to get the product delivered? As a company offering full asset-based lending solutions, Express Business Funding offers competitive purchase order financing in Canada to cover up to 100% of the cost of product you need to order and pay for prior to the product being delivered to your customer. This solution allows you to purchase pre-sold product without needing to use your own funds. Contact us for our competitive low rates.

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Canadian Finance Company

How Purchase Order Financing Services Work?

  • Once you receive an order for finished goods from a customer
  • Issue an order to your supplier, detailing where goods are to be shipped
  • Your supplier may require a deposit prior to manufacturing or shipping the product
  • We provide the deposit on your behalf (if required)
  • The supplier manufactures the product that has been ordered and the product is inspected & shipped
  • Product is delivered and accepted by your customer, and you invoice them accordingly
  • An accounts receivable is created from that invoice, which is factored to replace the advance

The cost when using us as your vendor, varies based on your particular circumstance. Generally speaking, the rate is based on sales volume, the creditworthiness of your customer, the strength of your supplier and their ability to comfortably fulfill the orders, and the structure of the transaction. Cost can range between 2% and 3% of the amount of the advance, per month.
Our Toronto purchase order financing company works with businesses in Canada. We enable you to close more transactions and grow your sales. And, unlike many other traditional financing options, PO Finance can be set up very quickly. To receive more information and learn about how Express Business Funding is becoming the Canadian private business factoring company of choice for small to medium size businesses in Canada, call us toll-free at 1-888-496-1468.

 

Who Is Eligible?

Purchase Order Financing is available to new and existing clients who make use of our invoice factoring services. If our client / their company requires extra business funds to fill a large purchase order. Express Business Funding will advance up to 100% of the bill value directly to our client’s supplier in order to purchase the required goods. To qualify for this Purchase Order Financing, the client must have a good history of sourcing or manufacturing the product. They must be dealing with reputable suppliers and the purchaser must be financially strong.
Purchase Order Financing is not available for new product lines. The client must have experience with the product and a sales history with the customer. There must be a legally binding purchase order in place with acceptable payment terms. Other securities may also be required when using the purchase order funding solution.

Transaction Settlement

Many purchase order finance companies either are a factoring company as well, or have a strong relationship with a factoring company partner. The PO transactions are usually settled using factoring – since the customer receiving the goods will usually be expecting payment terms of anywhere from 15 to 60-days.  
Using an asset-based lending company that offers both products under one roof can lead to added benefits. Often the PO cost is lower for the portion of the transaction that covered the financing of the purchase order. Factoring the resulting invoice with the same company provides a “cradle-to-grave” solution and the vendor may provide a blended rate.

 

Benefits of Our Services

As a leading loans and factoring company in Canada we offer a number of benefits that can help your business grow, including:

  • Providing funding to pay suppliers for confirmed orders
  • Allow you to take on additional, and/or larger, orders
  • Has no transaction maximums
  • Is easy to use and set up

Qualification Criteria

We offer a number of medium and small business funding products. Everything from private business loans to invoice factoring services. However, in order to qualify for PO finance with Express Business Funding, you need to:

  • Have creditworthy customers placing irrevocable purchase orders
  • Resell products to your customers with no (or minor) modifications
  • Have invoices (accounts receivable) free of any liens
  • Have profit margins of at least 25%

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