Purchase Order financing is a great cash flow solution for trading companies which have purchase orders on hand, yet can't fill due to a lack of funds immediately at their disposal. Purchase Order Financing provides wholesalers and importers with the funds to purchase or manufacture goods that have been pre-sold to a credit worthy customer. Purchase Order Financing is easier to qualify for and results in financing that can cover supply costs and deliver large orders on time.
If the profit margin on your deal is sufficient, Purchase Order Financing might cover up to 100% of the cost of the product while also in transit. This makes purchasing pre-sold products quick and does not require extending an existing bank line of credit. It also provides additional liquidity thereby encouraging business growth and development.
Both domestic and overseas manufacturers require a letter of credit prior to producing or shipping final product. At BVD Capital, we issue letters of credit, and arrange for all the required quality checks by obtaining product inspections in the countries of origin.
Purchase order financing is a financial transaction in which a client (You) assigns an order to a factor (BVD Capital) to get cash in advance to buy supplies and pay labor.