Purchase Order Finance

Purchase order (PO) finance allows businesses to access working capital against a confirmed customer purchase order, before the goods are produced or procured. The finance provider pays the supplier directly, enabling the business to fulfil the order without tying up its own working capital.

PO finance is particularly useful for businesses in import/export, wholesale, and manufacturing that receive large orders they cannot fund from their own cash flow. It bridges the gap between placing an order with a supplier and receiving payment from the customer.

PO finance facilities are typically structured to convert into invoice finance once the goods have been delivered and an invoice raised - providing seamless funding across the full order-to-cash cycle. Costs typically range from 1.5-4% per 30 days depending on the transaction size, margin, and counterparty risk.

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