[mca123]

A plastics manufacturing/distribution facility has a Sale of Goods Contract with orders throughout March and April.

It's with 1 client. What's the typical advance rate for purchase order financing??

[RichardGerard]

Not sure who here does PO Finance.. Our Banks do however.. Typical advance on PO's is 50%..

Richard 516 510 3855

www.businesscapitalconsultants.com

[bdshaw]

There's no way to tell from the information you have given.
In some cases I have placed PO deals that will up to 100% of materials and 65% of labor. A few others at 70% of the whole deal. Is the customer in the US? If not we might be able to finance 100% and arrange for the receivable tobe financed at 8% APR.
Bob Shaw
734-929-3800

[Ryan Shiroky]

One says 50%, one says 100%... who ever said competition doesn't breed excellence?

[IKorie]

I would go with Richard, he is on his game.

[cardinalequity]

Give Bob Shaw 734-929-3800 (bdshaw) a call, he probably has more finance experience in certain fields like this than most of us combined.

[RichardGerard]

Obviously the devil is in the details.. if however bdshaw can guarantee 100% I would work with him!

[bdshaw]

Thanks

[bdshaw]

Richard I would have gone with this Shaw guy also
As you are all aware each deal that comes along is different. Although after 40 years I've found lenders for the most part only need to answer two questions. Has the client paid their bills in the past and are they in a financial situation where they can pay in the future. That can be as simple as a credit report and as complicated as spreading up to 5 years of financial statements with ratio analysis (don't ask). The answer to those questions gives you a strong signal as to what financing vehicle would work best for the client.
Sometimes we can provide 100% funding for working capital, equipment purchases, business real estate Ect. Sometimes not.

Bob Shaw
734-929-3800

[RichardGerard]

Understood Bob.. Of course.. There are scenarios where many things can be achieved. With our affiliation to a Major Commercial Bank's ABL Division, with Billions in Assets, we have access to money at rates extremely competitive.

On typical scenarios PO's will be advanced at 50%. If firms have the Financials you described above, they WOULDN'T be working with people on this site. I'm sure you will agree with that as well.

Best Regards...