Purchase Order Financing
Purchase order financing helps finance the gap when cash flow is tight, which may be due to suppliers requiring cash on demand while customers want to pay on a net 30 or net 60 day term. Rather than spending the cash up front to pay for goods, the purchase order obtained from the customer can be presented to a lender who can provide funds to pay the supplier. The lender can then be paid when cash is collected from the customer.
This process helps with obtaining discounts and providing goods to customers on a timely basis while reserving working capital.
Purchase Order Finance and the CNF Exchange Difference
Purchase order financing is designed specifically to meet the needs of business and provides a short-term cash flow solution for businesses that have received orders for goods but have not yet received the payment expected for those goods. Essentially, purchase order finance agreements use your customer's purchase order as collateral for the bridge loan that allows you to produce the items ordered. This short-term financing solution is available from a wide range of commercial lenders in the CNF Exchange network and can offer real advantages for businesses that occasionally experience cash flow shortfalls. Purchase order finance agreements can also provide added working capital to continue important projects or to manage unexpected expenses when they arise. CNF Exchange is designed to provide a full range of lending options for borrowers through our exclusive network of investors and lenders. As a result, we can connect you with lenders that offer specialty financing products including purchase order finance agreements.