What is purchase order financing?
Purchase order financing is a unique Financing Program that allows manufacturers and wholesalers to receive up to 100 percent of the funds needed to fill an order when they are unable to do so on their own. This happens for any number of reasons, but is commonly due to cash constraints or lack of credit from suppliers.

Who uses purchase order financing and why?
This type of lending agreement can be used by numerous types of businesses, including:

  • Wholesalers/Distributors: These businesses have warehouses of goods for sale to retailers and other businesses. When they receive an order, they will need to be able to fill it. If they are unable to do so, purchase order financing could be utilized so they don’t miss an opportunity for growth.
  • Manufacturers that Outsource: These are companies that outsource most of their production to other companies outside the country, or within the U.S, and generate revenue by filling orders for other companies. To be able to continue growing, manufacturers need to have the ability to fill the orders they receive. However, if they aren’t able to fill an order on their own, they could use purchase order financing credit enhancements.

Benefits of purchase order financing
Utilizing this type of financing can provide a company with multiple benefits, such as:

1. Allow small businesses to fill large orders: Without purchase order financing, small businesses might not have the capacity or credit to fill a larger-than-usual order. This type of financing agreement allows smaller companies to be able to take advantage of larger orders – such as one from a big box retailer like Wal-Mart, without having to tie up too much capital, or capital they do not have.

2. Don’t sell part of your businesses: In some instances, smaller companies will sell off part of their business so they are able to gain access to capital to fill a large order. Million-dollar orders can be a game-changer for companies, and not being able to fill them can result in lost opportunities, hurt their reputation, and kill the chance of getting future orders. However, with Crossroads Financial, businesses receive up to 100 percent of the funds needed to fill an order, so they don’t have to worry about selling any equity.

What would happen to your reputation if an industry giant issued your company a large purchase order that you were unable to fill due to cash constraints? When you partner with Crossroads Financial, worrying about your PO funding will be a thing of the past. Seek out large orders with the security and comfort of knowing Crossroads ‘has your back’.

A direct lender to both the US and Canada, Crossroads Financial provides up to 100 percent of your purchase order. We help our clients preserve valuable cash flow and help them finance their purchase orders rather than selling equity or wiring funds overseas. Crossroads has put in place quality controls that help protect our clients’ interests and ensure their goods are delivered to them in a timely manner. No more lost opportunities; increase sales and increase profits.

Financing can begin in a matter of days, not weeks. Please review our purchase order finance highlights below:

  • Can fund up to 100 percent of your purchase order for pre-sold goods; international or domestic
  • Will issue an irrevocable letter of credit from an A+ rated bank to your suppliers within a few days of application
  • Create revenue growth without adding more debt or taking equity partners
  • Increase sales while preserving existing capital

Wholesalers and manufacturers that need extra financial assistance filling an order should contact Crossroads Financial to see if they qualify for Purchase Order Financing.

How Can Crossroads Help You?

What would happen to your reputation if an industry giant issued your company a large purchase order which you were unable to fill due to cash constraints? When you partner with Crossroads Financial, worrying about your PO funding will be a thing of the past.

A direct lender to both the US and Canada, Crossroads Financial allows YOU to finance up to 100% of your purchase order. We help our clients preserve valuable cash flow and help them finance their purchase orders rather than selling equity or wiring funds overseas. Crossroads has put in place quality controls which help protect our clients’ interests and ensure their goods are delivered to them in a timely manner.

  • Can fund up to 100% of your purchase order for pre-sold goods; international or domestic
  • Will issue and irrevocable letter of credit from an A+ rated bank to your suppliers within a few days of application
  • Create revenue growth without adding more debt or taking equity partners
  • Increase sales while preserving existing capital

Financing can begin in a matter of days, not weeks. Please review our purchase order finance highlights below and either call Director of Sales at 561-997-8627 or complete our brief contact form so we can respond to your request ASAP. Let the FUNding begin!