Purchase Order Financing
If you receive orders that exceed your available cash, then Purchase Order Financing may be right for your business. Purchase Order Financing is used when you have orders from credit-worthy customers, but you need capital in order to purchase the materials/products from your suppliers. ClearCoast will advance the cash you need to pay your vendors, either one time or on a revolving basis.
How does Purchase Order Financing work?
Did you know that companies can use purchase orders to help fund a project with little to no upfront capital? Your customers’ credit status is what counts, not yours. Starting with a valid PO from a customer, funds can be advanced in days to begin each step of order fulfillment, from production to delivery to the customer. As a third party, ClearCoast will oversee and monitor each step, verify quality, and protect risk throughout the entire process.
ClearCoast first advances the amount to cover the costs to produce and deliver the order to your customer. As soon as your customer receives the order, an invoice is sent by you to the customer. Once the invoice is sent, it becomes an accounts receivable (A/R) relationship between your customer and ClearCoast. Your customer pays the invoice to ClearCoast on your agreed upon terms. When payment is received, ClearCoast keeps their contracted fee and remits the remaining balance to you. You are now in a position retain your profit margin. Financially you are able to accept new orders and repeat the Purchase Order Financing process. At the same time, your company is growing in the process.
Why does my business need Purchase Order Financing?
Instead of turning away new business due cash flow issues, ClearCoast provides the flexibility for companies to use their purchase orders for 100% production funding to access working capital needed to fill the order. No more waiting months for your invoices to be paid in order to access capital.
Companies must be able to accept new business projects (orders) to grow. By using a valid PO, funding can begin immediately. This allows the company to stay focused on sales, not worry about when the next round of funding will occur. The benefit is growth at an unlimited pace, from purchase order, to manufacturing, to shipping and delivery of the order to the customer. Purchase order funding eliminates waiting for final payment in 30, 60, or even 90 days. You are now in a cash-flow position to continue business and grow as fast as new orders come in.
Benefits of PO Financing
Fast Funding for Your Business!
- Same day approval/closing in 2-5 days
- Working capital is sent to vendors within 24 hours of generating a purchase order
- Deal directly with decision makers
- 100% financing on purchase orders
- Provides unlimited ability to fulfill purchase orders
- Allows you to fulfill much larger orders
- Eliminates need to credit qualify
- Enables you to negotiate volume pricing and better terms with suppliers