Purchase Order Financing is very misunderstood. We will discuss if it is applicable to your situation and what you can do to qualify for the Purchase Order Financing or OC Financing.
You must distribute or wholesale a product:
Purchase Order Financing is designed either to buy the products for you or to give your supplier confidence that they will be paid if they perform correctly. An OC Funder can write a letter of credit in your provider’s name or you can give your supplier a Seller Guarantee that will be paid if they meet the quality, quantity and time standards of your purchase order.
There are not many steps in your products:
OC financing is designed primarily for products that stay in approximately the same state from when you buy them to when you sell them. If your product requires many production steps or several suppliers there is a financial product called Production Financing. It is more similar to Asset Based Loans. If this describes your situation, call us at (866) 598-4295 or send us an email to info@businesscash.es.
Gross margins of + 25%:
Your margin needs to be high enough to cover your expenses, freight, OC financing costs and most importantly, profits. The old joke that “we lose money in each transaction, but we recover it with volume” comes into play here. We want it to grow and prosper and it can only do so if it has enough gross margin to work with. Do your homework and make a spreadsheet with all your costs. We can help you with this exercise.
A Big Order or Hyperactive Growth It’s not a Problem:
A plus of Purchase Order Financing is that it was designed to take your business to the next level. For example, your typical order is $ 50,000 and you have the opportunity to comply with a $ 250,000 order. For this, the Purchase Order Financing, the Inventory Credit Lines or the Supplier Financing were designed. We can also help with the increased logistic load of your storage, transportation and insurance business. Due to our experience in the financing and circulation of goods, we can get you the right experts. We can also provide specialized transaction management assistance and expert advice on the management of cash financing.
In summary, we like to finance general balance purchase orders for importers and exporters that serve a variety of industries. We have extensive experience with products of all kinds. To talk about your financing needs or a possible transaction please call us at (888) 400-5930 or send us an email to info@businesscash.es. You can also receive an Instant Budget, by clicking here.