Got a confirmed purchase order but not the cash to fulfill it? Purchase order financing pays your suppliers so you can deliver the order and get paid.
Check My Eligibility →Purchase order (PO) financing gives you the funds to pay your suppliers to produce and deliver goods for a confirmed, large order. The funder pays your supplier directly, you deliver the order to your customer, and the funder is repaid when your customer pays.
It is designed for product-based businesses — importers, wholesalers, distributors and contract manufacturers — that land big orders but cannot finance the cost of goods. Through BidMyCapital you can compare PO financing offers from multiple lenders.
You have a signed purchase order from a creditworthy customer.
The funder covers the cost to manufacture and ship the goods.
The funder is repaid from the customer's payment for the order.
PO financing fees are a percentage of the PO value, typically 2% to 6% for the period the funding is outstanding, plus a modest structure fee. Because it covers a short, defined period, the dollar cost is usually small relative to the order's profit.
A signed PO from a customer with a good payment record.
Evidence you can actually deliver the goods or services.
Most funders want POs of $25,000 or more.
The order must carry enough margin to cover costs and fees.
A funder pays your supplier to produce goods for a confirmed order, then is repaid when your customer pays for the order. It bridges the gap between a big sale and the cash to fulfill it.
PO financing covers the cost to make and deliver an order before it ships. Factoring advances against invoices for orders already delivered and billed.
Yes. PO financing is widely used by importers to pay overseas and domestic suppliers for confirmed orders.
Most PO funders look for confirmed orders of $25,000 or more, with adequate gross margin.
Once the PO and supplier are verified, funding can be arranged in days rather than weeks.