Large Customer Orders
Support supplier payments associated with substantial confirmed orders that exceed existing working capital capacity.
Finance Orders Before Customer Payment
Finance supplier costs and fulfill confirmed customer orders without placing additional pressure on existing working capital. Our purchase order financing solutions support procurement, supplier payments, and transaction fulfillment.
Securing a significant customer order creates an opportunity, but fulfilling it can require substantial upfront supplier payments before the customer provides payment.
Purchase order financing, also known as PO financing, provides capital for eligible supplier costs associated with confirmed customer orders. It helps businesses bridge the timing gap between procurement and customer collection.
Unlike receivables financing, which typically advances funds against invoices after a sale, purchase order financing addresses funding requirements earlier in the transaction cycle.
Financing Across the Trade Cycle
Depending on the transaction, purchase order financing may cover supplier deposits, eligible production costs, or procurement payments associated with a confirmed order.
For international trade transactions, the financing structure may also incorporate documentary letters of credit, assignments of contracts, or other payment-security arrangements.
We evaluate the customer order, supplier capabilities, buyer creditworthiness, transaction margins, and anticipated payment cycle to determine the appropriate structure.
Financing for Order Fulfillment
Supplier Prepayments
Finance eligible upfront payments required by domestic or international suppliers.
Import & Export Transactions
Support procurement and trade transactions involving confirmed customer demand.
Seasonal Purchasing Requirements
Access transaction-based financing when supplier commitments increase during peak periods.
From Purchase Order to Customer Collection
- 01
Order Assessment
We evaluate the confirmed purchase order, customer, supplier, payment terms, and delivery requirements.
- 02
Supplier Financing
We structure funding for eligible supplier costs, with payments made according to the approved financing arrangement.
- 03
Order Fulfillment & Repayment
Once the order is fulfilled and the customer is invoiced, the financing is repaid according to the agreed transaction and collection structure.
Where appropriate, purchase order financing may be combined with receivables financing to support working capital throughout the transaction cycle.
Financing Parameters
Terms are indicative and subject to underwriting and transaction requirements.
- Facility Size
- $3M–$100M
- Financing Basis
- Eligible confirmed purchase orders
- Advance Rate
- 60%–80% of eligible purchase order financing amounts
- Financing Structure
- Transaction-based
- Facility Term
- 12–36 months
- Geographic Coverage
- Eligible U.S. and cross-border transactions
- Eligibility Considerations
- Confirmed orders, supplier capacity, buyer creditworthiness, margins, and payment arrangements
$15 Million Trade Financing Facility, Expanded to $35 Million
Supporting International Commodity Transactions
Commodities Trading
The Challenge
An international commodities trading group required financing to purchase products from suppliers and support transactions involving documentary letters of credit.
Our Solution
We initially approved a $15 million purchase order and factoring facility to finance eligible supplier invoices. As trading requirements evolved, the facility expanded to accommodate larger supplier prepayment transactions. We increased the facility to $25 million, and the arrangement subsequently evolved into an LC discounting facility with prepayment capabilities.
The Result
A year later, we further increased the facility to $35 million, including a $20 million prepayment sublimit, providing additional capacity for the group's international trade transactions.
Industries Using This Solution
See how this structure can address industry-specific cash cycles and collateral.
Finance Your Next Order.
Explore purchase order financing structures designed around your supplier requirements and customer contracts.