Purchase Order Financing
Say yes to bigger orders. Purchase order financing covers production costs so you can focus on delivery.
Ready to take the order that will propel your growth
Purchase order (PO) financing provides the funds to pay suppliers so you can fulfill orders, take on new clients, and grow your business.
Manufacturing's cash flow crunch
Manufacturing is an essential part of the american economy, yet many manufacturers find it difficult to secure traditional financing. It is especially hard to get funding when you need it most … before the work starts.
In the manufacturing industry, cash flow challenges are a constant battle. The gap between incurring production costs and receiving payment for finished products can strain even the most well-managed businesses, making it difficult to take on new orders without additional funding.
Securing financing as a manufacturer can be challenging. The industry’s cyclical nature, combined with the high upfront costs and the time it takes to produce and sell goods, makes it difficult to obtain loans from conventional banks.
This can create a cash flow bottleneck, making it difficult to accept new or larger orders, and invest in future growth.
Beat the Cash Flow Pinch That Comes With New Projects
Purchase Order Financing
What Is Purchase Order Financing?
Purchase order financing is an ideal solution for construction and manufacturing companies that receive large orders but don’t have the upfront cash to fulfill them. Whether you’re a contractor who just landed a big project or a manufacturer needing to supply custom components, purchase order financing allows you to keep the ball rolling without dipping into your reserves. With this financing, the funds you need to pay suppliers or purchase materials are provided directly by a financing company. Once your client pays for the completed project, you repay the financing, along with any agreed-upon fees.
How Can it Help
- Keep Your Projects on Track: Don’t let cash flow issues slow you down. Purchase order financing gives you the capital to start or continue projects without delay.
- No Additional Collateral: Your purchase order secures the financing, so you don’t need to put up other assets.
- Quick and Easy Access to Funds: Get the cash you need quickly to meet tight deadlines and take on bigger jobs.
- Fuel Your Growth: Take on more or larger projects without worrying about upfront costs, helping your business grow.
Who Should Consider It
- Small Construction Firms: Companies that are growing but may not have the capital to take on large projects immediately. Purchase order financing allows them to bid on and secure bigger jobs without worrying about upfront costs.
- Boutique Manufacturers: Small manufacturing businesses that specialize in niche products and need to fulfill larger orders that could otherwise strain their limited resources.
- Specialized Contractors: Contractors who provide unique services or products and need to buy specific materials for a job but don't have the cash flow to cover it upfront.
- Small Suppliers in the Construction Sector: Smaller suppliers who want to fulfill large orders for their clients but need the capital to purchase materials.
Examples of Use
- Small Commercial Building Projects: A small contractor who has been awarded a contract to build a local business office and needs to purchase the necessary materials without depleting their cash reserves.
- Niche Product Manufacturing: A boutique manufacturer that has received a large order for custom-made components and needs financing to cover the material costs.
- Renovation Projects for Small Businesses: A contractor specializing in renovations for small businesses needing to purchase high-quality materials for a unique project.
- Supplying Local Construction Projects: A small supplier who needs to buy in bulk to fulfill a large order for a local construction project but requires financing to do so.
Work in Progress Financing
Work and progress financing is designed for construction and manufacturing companies working on long-term projects where payments are tied to specific milestones. This financing solution gives you the cash you need to keep the project moving, covering ongoing expenses like labor, materials, and equipment. It’s particularly useful when client payments are staggered or delayed, ensuring you have the funds to meet your commitments and keep your project on schedule.
Is That New Project Fueling Your Growth — Or Straining Your Cash Flow?
Don’t leave it to guesswork.
Our Project Cash Flow Calculator shows you exactly when money is coming in, when it’s going out, and how much profit you’ll actually take home. With clear visibility, you can protect your margins, plan with confidence, and keep your business moving forward.