[SimonFunds2025]

i am probably not saying it right but which companies out there do purchase order advances

[Olderguy]

Reach out...it's not that simple...what is the industry and where are the PO's from?

Construction, manufacturing, government or what?

[Ehenek]

It is called PO-Financing. I would need to know more about this.

[Kevin Henry-Seacoast]

Purchase order finance is usually used to assist in fulfilling customer orders for goods. There are a few institutions that offer this service. The financing is usually provided to cover the cost of the goods purchased. The institution will want to be paid for the financing usually when the goods are delivered to the end customer. There are banks that provide trade finance to accomplish this. Most non-banks that provide this service tend to be quite expensive.

Often the financing can be accomplished by financing current assets to assist getting the prospect over the new order hump. Most prospects that have approached me seeking purchase order financing where able to accomplish their goal by financing the current accounts receivables and inventory in a revolving facility. This assisted with the current working capital needs, the purchase orders on the books, and had proper financing in place to assists with working capital to fulfill future orders.

A deeper dive is needed to see if you can accomplish the prospect's goals with the current assets they have or if you will need to seek a trade finance program with a bank or purchase order financing with a non-bank.