What is PURCHASE ORDER FINANCING?

Purchase Order Financing: A financing method that enables a corporation to purchase raw materials or finished goods that will be turned into products and sold in a very short period of time. Purchase order financing is short term in duration and is usually retired within 30 to 60 days of issuance.

If your bank won't lend you money, you may be able to obtain it through purchase order financing.

This method can be useful for businesses with purchase orders; the finance company helps to pay for manufacturing and delivery so you can complete your orders.

NOTE OF CAUTION: This is an expensive form of financing; annualized rates exceed 40%, although most loans are repaid within 60 days.

*Resources: Hartsko, King Trade Capital, PurchaseOrderFinancing.com, and Wells Fargo.

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Lynn M. Miller, LMA, LLC
Business Development & Consultation
*The Professional with a Flair!*
Phone: 718.506.2329
Fax: 718.228.7331
lmallc@vmdirect.com
www.lmallc.com

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