How does Purchase Order Financing Work?
Purchase order financing is a cash advance that small-business owners can receive on their purchase orders. With PO financing, a lender will pay your third-party supplier up to 100% of the costs required to produce and deliver the agreed-upon goods to your customer.
Once your customer receives the goods, you invoice them for the fulfilled order, and they pay the purchase order financing company directly. Then, the PO financing company deducts its fees and pays you the rest.
