Purchase Order Finance
How Purchase Order Finance Benefits Your Business
Unlock the potential of your business with our innovative Purchase Order Finance solution. Unlike traditional financing options, this product provides crucial funding from the moment that you generate an acceptable purchase order from your future debtor.
Access Working Capital Early
Get the funds you need as soon as your purchase order is approved. This allows you to cover operational expenses, pay suppliers, and manage payroll without delays to meet the order. Early access to working capital ensures that your business operations run smoothly and efficiently.
Strengthen Supplier Relationships
Pay your suppliers on time and secure better terms, ensuring a smooth supply chain and avoiding disruptions. Strong supplier relationships can lead to discounts, priority service, and improved credit terms, all of which benefit your bottom line.
Fuel Business Growth
Use the upfront capital to take on larger orders, explore new opportunities, and drive business expansion without worrying about cash flow constraints. With Purchase Order Finance, you can confidently accept bigger projects that you might otherwise have to turn down.
How It Works
Generate Purchase Order
Once you have a purchase order from a credible debtor, you can apply for our Purchase Order Finance. This step is straightforward and designed to get you the funds you need as quickly as possible.
Get Approved and Funded
Upon approval, we provide the necessary funds to cover the costs associated with fulfilling the order. Our approval process is swift and efficient, ensuring minimal disruption to your business.
Fulfil the Order
Use the funds to pay your suppliers and produce or acquire the goods needed to complete the purchase order. This ensures that you can meet your client’s expectations and deadlines.
Settle Payments
Once the debtor pays for the goods, we are reimbursed directly by the debtor or by the Asset Financier funding the underlying asset you purchased. This seamless process ensures that your cash flow remains steady and predictable.
Security and Peace of Mind
Our Purchase Order Finance is backed by robust security measures to protect your business:
First Cession
We secure a first cession of the underlying debtor as part of the Purchase Order Finance agreement. This legal assurance provides an extra layer of security for the transaction.
First Pledge and Cession of Stock
Additionally, we require a first pledge and cession of the financed stock, providing extra security for the transaction. This means that the goods financed under the Purchase Order Finance agreement are used as collateral, giving you peace of mind.
Facility Type
Each Purchase Order Financing facility is structured according to our clients underlying contractual requirements and our structures offer a clear and manageable repayment process, ensuring that your business can meet its cash flow requirements.
The non-revolving nature of the loan means that once the funds are repaid, you can apply for new financing for future purchase orders, maintaining a healthy and manageable financial cycle.
Next Steps
Maximize your business potential with our comprehensive Purchase Order Finance solutions. Our flexible, secure, and reliable financing options are designed to help you manage cash flow, strengthen supplier relationships, and seize growth opportunities. Contact us now to learn more about how our Purchase Order Finance can support your business and help you achieve your goals.
How do I find out more about Purchase Order Finance?
Simply complete our online enquiry form and one of our Purchase Order Financing account experts will be in touch.
Frequently Asked Questions
Purchase Order Finance mirrors Single Invoice Discounting but starts earlier in the process. Financing commences when the client generates an acceptable purchase order from the underlying debtor. Merchant West is then paid directly by the debtor or the Asset Financier to settle the transaction, with security in the form of a first cession of the underlying debtor and a first pledge and cession of the financed stock.
Purchase Order Financing offers several key benefits, including:
- Early access to working capital, allowing you to cover operational expenses and manage payroll without delays.
- Strengthened supplier relationships through timely payments, which can lead to better terms and discounts.
- The ability to take on larger orders and explore new business opportunities without cash flow constraints, driving business growth and expansion.
Purchase Order Financing is a financial solution designed to help businesses fulfil large orders without facing cash flow challenges. It provides the necessary funds to cover the cost of producing or purchasing goods required to fulfil a purchase order from a credible debtor.
Get in touch with us
Want answers to a pressing question about our purchase order financing or other solutions. Fill in the form and we’ll get back to you shortly.
