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Purchase Order Funding

Expand your Government Business at Capital Monterey.

Thank you for visiting us at Capital Monterey’s website. Our purpose is to always serve you in a timely and professional manner. To best serve your needs, please answer the following questions and send it to us. As always, all requests are confidential.

What Is Purchase Order Funding?
Purchase Orders are a formal agreement that a product is going to be bought at a specific price.

How Are Purchase Orders Created?
Purchase Orders are submitted by a buyer, to the provider of a product. This is a promise to purchase goods rather than an invoice for goods already delivered. In some cases, cash is needed to allow the business to receive raw materials they need to fill the order and deliver the goods requested in the purchase order.

 

Who Can Benefit from the Funding of Purchase Orders?
The receiver of the purchase order can sell their respective income stream. The proceeds from this can then be used for equipment purchases, raw materials, or other business expansion and expenses.
Have you received purchase orders lately? Do you need money before you can fill the orders?

Purchase order funding is an excellent capital option for your small business needs. 

Purchase order funding provides short term financing which provides 100% of your costs to fill orders from creditworthy customers. If you are reselling or distributing a finished product you may be provided 100% of all your costs to fill the order. There are several benefits to this sort of funding.

You can pay your supplier/vendor in advance of shipping the product if that is what they require with purchase order funding. Advance payments can be made to them or a Letter of Credit (LOC) supporting the payment obligation can be made. With this option your businesses creditworthiness isn’t taken into consideration, but the creditworthiness of your customer is.

This gives new businesses an opportunity to take advance of purchase order funding.

Large purchase orders can be hard to fill with normal cash flows so purchase order funding as an option allows your business to take advantage of it. Another benefit of this type of funding options is that you can work with overseas suppliers.

Companies and vendors that qualify for purchase order funding typically drop ship products from suppliers to credit worthy customers.