An advanced solution for advance payment challenges
Supplier payment schedules can be a major issue for companies with little or no equity. If your company is receiving orders at a greater rate than your available working capital, Liquid Capital’s purchase order (PO) financing is a short-term financing tool designed to help your business grow.
For companies receiving finished or near-finished goods from their suppliers, Liquid Capital’s PO financing solution helps you meet supplier requirements and bridge the sometimes extensive gap between when a product is loaded for transit and when a customer receives and pays for it. Upon approval, PO financing covers up to 100% of the cost of product in transit.
If your business is incorporated in the United States and Canada, you may qualify for P.O. Financing. To learn more contact your Liquid Capital Principal.
Works in conjunction with A/R factoring
Typically, PO financing works in combination with Liquid Capital’s A/R factoring solution, which kicks in once the actual sale to the customer becomes final. A/R factoring—which provides you with working capital financing based on the value of your accounts receivable (generated by the final sale)—is used to pay off your PO financing obligation.
PO financing finances supplier requirements and goods in transit; A/R factoring then finances accounts receivable to pay the PO financing debt.
The Liquid Capital difference
- Our best-in-class service is delivered through a local distribution network. We offer the largest network of alternative funding professionals across North America, so you deal with local decision makers who understand your market, your business and your needs.
- Inability to secure supplier credit won’t limit your growth strategy. If you’re buying finished or near-finished goods and selling to credit-worthy customers, you can finance goods in transit without tying up your own money.
- Fast service means opportunities and obligations don’t have to wait. Upon approval, financing is available immediately, allowing you to purchase your product quickly and get the production/shipping process underway.
- Get full reporting transparency, with access to 24-7 online support. You always have full insight into the status of your arrangement: invoice images, supporting documents, collection notes and payment details.
- Quality assurance is part of the bargain. At the point of shipping, your goods are inspected by an international agency to ensure quality, quantity and compliance.
- Your financing solution is based on the quality of your POs. You’ve worked hard to develop a strong customer base. PO financing leverages the future value of your POs.