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What is Purchase Order Financing?

A purchase order is an order form, issued by a buyer to a seller. When it’s accepted by the seller, it’s an agreement between buyer and seller on prices and quantities for a product or service.

Although a positive indication for a business, it can lead to problems for cash flow, primarily caused by two things.

Firstly, the business needs large funds to pay its suppliers to produce the goods for the order, a payment which is usually required prior to supplier production.

Secondly, the end customer usually has lengthy payment terms for the product they are receiving, in some cases this can be up to 120 days. Fulfilling this order requires the business to have substantial finance to fund production, until they get paid by the customer.

Purchase order finance, also known as "PO Finance", provides funding for businesses with purchase orders to pay their suppliers and therefore smoothing out cash flow.

How MarketInvoice can help

We offer a range of funding solutions that could help your business, including contract finance, selective invoice discounting or whole ledger discounting.

It’s quick and easy to access funds, which means you can get the cash flow you need to get on with business. With MarketInvoice, you get:

  • Fast funding: apply online in 15 minutes and get a response within 24 hours
  • Hassle free experience: easy to use digital interface
  • Help in real-time: personal customer support
  • Straightforward costs: no hidden fees

Want to find out more?

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