Purchase Order Financing is a short-term funding solution. This viable solution helps businesses fulfill large customer orders. Companies involved in manufacturing, distribution, and wholesale sectors primarily use this financial solution. Purchase Order loans allows businesses to pay suppliers for the necessary goods and fulfill customer orders, even when they don't have sufficient funds to cover the upfront costs.
Purchase order (PO) financing helps businesses fulfill large customer orders when they lack sufficient working capital. Instead of turning away opportunities, companies can leverage PO financing to pay suppliers upfront. Here’s a description of the typical procedure:
A business receives a purchase order from a customer for goods or products.
The business identifies a reliable supplier who can fulfill the order. However, the business may not have enough funds to pay the supplier in advance.
The business applies for purchase order loans from a financial institution or a specialized financing company. The lender evaluates the purchase order, the customer's creditworthiness, and the supplier's ability to fulfill the order.
If approved, the lender provides funds to the business, usually in the form of a letter of credit or direct payment to the supplier. The amount of financing is based on a percentage of the purchase order price, usually up to 80%.
With the funding available, the supplier can produce and deliver the goods to the customer.
Once the customer receives the goods and makes payment to the business, the lender is paid along with any applicable fees or interest to finance the purchase order.
We support businesses handling large purchase orders that require immediate capital to fulfill. Whether facing rapid demand, entering new contracts, or managing seasonal surges, our solutions help ensure you have the working capital needed to deliver without disrupting operations.
Our purchase order financing solutions are available nationwide, providing reliable support to companies across the United States.
Facilities are structured to align with the scale of your purchase orders and supplier requirements, ensuring you can confidently meet commitments and capture growth opportunities.
Funding is structured to cover supplier costs directly, allowing you to focus on production, logistics, and delivery. Our approach adapts to your industry, transaction size, and client requirements.
Financing is secured against valid purchase orders issued by creditworthy customers. Orders must represent confirmed transactions with clear delivery terms.
Rates are designed to remain competitive and transparent. Pricing reflects variables such as supplier terms, customer credit strength, and the scope of the purchase order.
Purchase order funding helps businesses maintain steady cash flow by bridging the gap between paying suppliers and collecting from customers. It ensures you have the working capital needed to fulfill large orders while keeping regular operations running smoothly.
With purchase order financing, businesses gain the flexibility to accept new opportunities and larger contracts without capital concerns. It removes financial barriers, enabling growth, expanding customer reach, and scaling operations with confidence even during periods of high demand.
Consistent access to funding allows businesses to pay suppliers on time, which strengthens trust and reliability. Building these strong relationships often leads to better pricing, improved terms, and dependable partnerships that can support future growth and expansion.
By covering supplier payments directly, purchase order financing removes the pressure of immediate funding needs. This allows business leaders to focus more on production, logistics, and delivering quality to customers, rather than managing financial constraints or payment delays.
Partner with a financing partner that understands the complexities of large orders, provides tailored capital solutions, ensures timely supplier payments, and supports your growth with expert guidance and long-term commitment.
Meeting supplier demands on time is critical to fulfilling purchase orders. Our team ensures you have the funding in place to cover production costs, supplier invoices, and logistics without disruption. This keeps your supply chain strong and your operations running smoothly.
No two purchase orders are alike, and neither are the financing needs behind them. We design customized funding arrangements aligned with your supplier terms, order volume, and customer requirements. This flexible approach helps you manage commitments with confidence and efficiency.
Opportunities often come with strict deadlines. Our streamlined funding process ensures you can quickly access the capital needed to complete orders, ship products, and satisfy customer timelines. Fast access to financing means your business can deliver without compromise.
With funding secured to handle supplier payments, your team can focus on production, logistics, and customer satisfaction instead of managing financial shortfalls. This allows you to maintain high service standards while protecting internal resources from unnecessary stress.
We view purchase order funding as more than a one-time solution. As your business wins larger contracts, enters new markets, or experiences seasonal demand, we adapt financing strategies to support growth. Our commitment ensures you always have a reliable partner by your side.
Don’t let upfront supplier costs limit your opportunities. Our purchase order financing solutions provide the capital needed to pay suppliers, cover production, and deliver on time. This enables your business to take on bigger contracts and grow with confidence.
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Import and export firms often purchase large quantities of goods from overseas suppliers before receiving payments from customers. Purchase order financing helps them secure these shipments without draining their working capital, ensuring they can fulfill big wholesale or retail contracts smoothly.
Manufacturers face high upfront costs for raw materials, labor, and production when handling large orders. Purchase order financing gives them the liquidity to deliver on bulk contracts with retailers or government buyers while keeping production schedules on track.
Wholesalers and distributors frequently purchase goods in bulk and sell them to retailers. PO financing allows them to accept larger orders than their cash reserves would normally support, helping them grow relationships with major buyers.
Fashion and textile companies deal with seasonal demand spikes and fast-changing trends. With PO financing, they can pay overseas factories and deliver collections to retailers on time, ensuring they never miss a seasonal opportunity.
Electronics resellers handle high-value, time-sensitive orders for products like laptops, phones, and accessories. PO financing provides the capital to secure stock quickly and meet strict retailer deadlines without supply delays.
Brands in food, beverages, beauty, and personal care often secure large retail contracts that demand upfront production. PO financing ensures they can fund initial runs and scale quickly when demand surges, keeping shelves stocked.
Healthcare suppliers face large purchase orders for PPE, medical devices, or pharmaceuticals from hospitals and government buyers. Financing helps them source and deliver without waiting for receivables, supporting critical supply chains.
Suppliers of steel, lumber, or specialty construction items need capital upfront for large-scale projects. PO financing provides the funding to secure materials quickly, ensuring they can meet demand without overextending working capital.
Government contracts are often large but slow-paying. Purchase order financing gives contractors the cash to fund procurement and production while waiting for milestone or final payments, ensuring they can meet obligations confidently.
Businesses that sell holiday goods, promotional merchandise, or event-based items face cash crunches before high-volume seasons. PO financing bridges this gap, enabling them to fulfill seasonal spikes without taking on long-term debt.
We work with businesses facing evolving financial needs, providing adaptable funding solutions to help them operate confidently and grow. Common scenarios where our clients rely on us include:
Businesses experiencing fast expansion often encounter cash flow gaps between rising sales and incoming payments. Our financing bridges this gap, enabling smooth scaling without operational interruptions.
Companies with cyclical or seasonal sales cycles benefit from steady access to working capital, ensuring operations continue seamlessly during slower periods.
Extended customer payment terms can create strain on cash flow. Our solutions provide immediate access to funds, allowing businesses to maintain operational stability regardless of payment schedules.
Importers often face significant upfront supplier costs. Our financing helps cover these expenses without disrupting overall cash flow, allowing smooth procurement and timely order fulfillment.
Certain opportunities or challenges demand quick access to capital. We structure financing to deliver working capital efficiently, enabling businesses to act decisively when timing is critical.
When traditional credit lines are reduced or unavailable, our financing solutions provide an alternative source of liquidity, helping maintain business continuity and operational flexibility.
Exporters with extended payment terms can leverage financing against receivables, enhancing cash flow and enabling continued service to international clients without financial strain.
Companies fulfilling large or unexpected orders often require upfront funding for production and delivery. Our purchase order financing ensures businesses can meet demand with confidence and maintain reliable supplier relationships.
The three main types of purchase orders are:
Purchase order financing provides funding before products are delivered, helping businesses pay suppliers and cover production costs. Invoice financing provides capital after the invoice is issued, converting completed sales into immediate cash. Both improve cash flow but address different stages of the business cycle.
Rates vary based on factors such as order size, customer creditworthiness, supplier terms, and industry. EPOCH Financial provides competitive and tailored financing solutions rather than a fixed rate, ensuring flexibility and alignment with your business needs.
Generally, we require a confirmed purchase order, information about the end customer, and supplier invoices or quotes. Our team will guide you through documentation to ensure quick approval and smooth access to funding.
Manufacturers, distributors, staffing companies, transportation firms, technology providers, construction contractors, and healthcare suppliers often use purchase order financing to meet supplier costs, production expenses, and delivery commitments without straining cash flow.
Funding timelines vary depending on the order size and documentation, but our process is designed to provide capital promptly, allowing you to pay suppliers and fulfil orders on schedule.
Yes. Businesses engaged in import/export can use purchase order financing to cover supplier payments, shipping costs, customs duties, and other expenses required to complete international contracts.
Absolutely. Many businesses leverage it repeatedly to manage ongoing orders, seasonal demand, or growth initiatives. Financing can be structured to support recurring operational needs.