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Purchase Order Finance

Access Financing Secured by your Purchase Orders.

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Purchase order financing can help if you are a wholesaler and have purchase orders that you cannot fulfill because you lack funds.

Unlike traditional bank financing, PO financing is easy to qualify for and can be set up quickly.

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FAQ

What it means
What is Purchase Order Financing?

Purchase Order Financing involves a bank/lender paying the supplier of another company, for supplies that have been ordered to fulfill a job for a customer. The Cash Advancement is typically not a 100% value of the Supplies Invoice, but it will cover a large portion of it.

What is the Process like?

E.g. You receive a Purchase Order from your customer and a Proposal from your supplier. You apply for PO Financing with a bank/lender. The bank/lender will then pay in partial the value of the Purchase Order to your Supplier, accompanied with the remaining balance from you. The supplier will then deliver the goods to your Customer. Thereafter, your customer will pay the bank/lender in full upon your invoice. The bank/lender will then deduct the fees incurred and return the balance to you.

How does Purchase Order Financing benefit me?

Typical Advantages of PO Financing:

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About PO Financing

What is PO Financing?
PO Financing is a form of short term borrowing which is extended by the bank or a lender to clients based on unpaid invoices.
Who is PO Financing suitable for?
Lenders / Factoring Companies are typically willing to finance your company if you are a growing business with moderate sales, or a larger business with strong sales and larger business financing requirements
Why do Businesses use PO Financing?
Companies often engage PO Financing to meet Short Term Liquidity needs. Higher liquidty allows companies to grow and run business operations efficiently.
How do I qualify for PO Financing?
Ideally, you'd meet the basic criteria if you sell goods or services on normal credit terms to various creditworthy businesses or government agencies, and your invoices are for fully delivered goods or fully provided services. The age of your business, its trading results and your asset position are less important when it comes to facility approval. Lenders are generally more interested in the Creditability of your customers (Debtors).
How much will you advance to Invoice Sellers? How do you determine that value?
Depending on the Credit Analysis on your company, the Lenders determine a LTV & Interest Rate that matches the best interests of both parties.
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We work with you on for documentation
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We contact you when business financing has been approved
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FAQ

  • How Long Does It take for a Loan To be approved?
  • Depending on the application the loan approval process will take between 3 to 10 working days
  • What is the interest rate that I can expect?
  • For the Micro Loan scheme, you can expect an interest rate from 3.7% flat per annum. You can pay off the loan at any point of time and the interest will be pro-rated
  • How do I know which loan I Quaify for?
  • If you are a Singapore incorporated company, you can potentially qualify for business financing, no matter how long your company has been incorporated. To know your options simply enquire here or call us.
  • Which lenders do you work with?
  • We work with all local and foreign banks in Singapore, Private Financiers and other lenders.
  • How do I get started with an application?
  • Simply enquire here, or drop us a call.
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