Fund the order, not just the invoice

Purchase Order Financing

Capital to fulfill a confirmed purchase order before you've paid your supplier or been paid by your customer.

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Purchase order financing pays your supplier directly so you can fulfill a confirmed order that's larger than your cash on hand would allow. It's priced per transaction and typically settles once your customer pays, often alongside invoice factoring for the collection side.

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Best for

  • Businesses with a confirmed order bigger than their cash allows
  • Distributors and resellers with creditworthy customers
  • Owners who don't want to turn down a large order

Common uses

  • Fulfilling a large confirmed order
  • Paying a supplier before your customer pays you
  • Taking on a customer bigger than your usual capacity

What you'll need

  • A confirmed purchase order from a creditworthy customer
  • A reliable, identified supplier
  • At least $250,000 in annual revenue (typical)
  • Healthy margin on the order to absorb financing cost

At a glance

Amount
Up to $2,000,000
Based on
A confirmed purchase order
Paid to
Your supplier, directly

Purchase Order Financing: which structure?

A few ways this is commonly structured. Your advisor helps you pick the right one.

Funds go straight to your supplier so goods ship without draining your own cash.

Best for: Orders where you don't already have a supplier relationship on credit terms.

Estimate your purchase order financing

Move the sliders to explore. These are illustrative figures, not an offer.

Total you'd repay

$210,000

Total cost of capital
$10,000
Est. weekly payment
$24,231
Simplified APR
~30%
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Illustrative estimate, not an offer of credit. Your advisor confirms your real rate and terms. An MCA is priced by a factor rate, not an APR; the effective APR is typically higher than the simplified figure shown, and your advisor discloses it before you commit.

Purchase Order Financing questions

Is this the same as inventory financing?

They're related — PO financing is tied to a specific confirmed order and often pairs with factoring once you've shipped; inventory financing funds stock more generally.

Does my customer know about this?

Often yes, since payment may route through the lender at some point in the transaction. Your advisor explains exactly how it works for your deal.

What if the order falls through?

This financing depends on the order completing — that's why a confirmed PO and a creditworthy customer matter so much upfront.

Indicative estimate based on your inputs — not an offer of credit. A specialist confirms exact products, amounts, and terms.

Other financing options

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