How You Can Expand Overseas with International PO Funding

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Click for Purchase Order Funding Quote

Growth has always been one of the most important goals of any business, and for your business that may mean opening new markets and client bases overseas. Of course, that can pose new risks for your company as well. Your bank may not be willing to give you the loan you need to fulfill all these purchase orders coming from overseas customers. But a lender that offers international PO funding will be definitely interested.

The way it works, is quite simple. If you have a large purchase order from a customer overseas, then the funding company offers you a percentage of that in advance. The percentage will depend on the reliability of that overseas company. You then get the money you need in order to fund the process that enables you to provide the goods the customer is asking for.

  1. Some foreign customers may not pay the upfront deposit. When a US company sells products abroad, it’s often SOP to ask for a deposit upfront before the company provides the goods. But not all customers abroad may be okay with this practice.

Some may take too long to come up with the traditional deposit, and they may not even be able to afford it. Other companies may simply be unwilling to put up the deposit, because it would then put a dent in their own cash flow reserves. These companies may then ask for (or perhaps more accurately, demand) open terms.

If you need that deposit to shore up your own working capital, then you may be forced to reject the deal, but with international PO funding you don’t have to anymore. Now you can boost your overseas sales with fewer restraints, while still enhancing your working capital.

That’s what the purchase order offers—the cash advance acts as the deposit in this case.

  1. Your bank may require you to purchase credit insurance. This may involve having to pay really high premiums. That can again put a strain on your working capital and make I more difficult for your business to operate. With the purchase order financing, you don’t have to buy the insurance any more. Your payment comes after the customer has paid in full. The payment goes to your lender, who takes the principal and the fees from the payment before the rest goes to you.
  2. Foreign purchase orders aren’t rated highly by many lenders. Even if you are considering some form of asset-based loans from your bank and other lenders, they may not consider your foreign purchase order eligible. But there are the assets that international PO funding companies are looking for.
  3. The risk may be too much for you. Even though the prospect of overseas growth is appealing, the very distinct possibility of write-offs may intimidate you. But the purchase order funding can protect you from such risks.

The world is getting smaller, and so is the domestic market. If you wish to grow, then that may mean selling overseas. There’s always the risk, but with purchase order funding then it can be a grand opportunity for more profits.

PO Finance for Apparel Distributors

Invoice factoring has long been a mainstay in the apparel business. If you are a distributor, when you supply clothing items to a retail store they can opt to pay you in 30 days—if you’re lucky. Sometimes the waiting period can be 45, 60 or even 90 days. Since you need the revenue from the sales as working capital for your next deals, you can partner with factors which provide immediate financing for these accounts receivable. But sometimes even that kind of financing isn’t enough, but with PO finance apparel companies can get the working capital they need. Purchase order financing is considered as a creative way to raise capital in order to meet a new large order.

What is PO Finance?

Essential, in PO finance apparel companies can get the money they need by using the purchase order as a form of collateral. The lender considers the credit of the customer who made the purchase order, and then calculates if your profit margin warrants the use of purchase order financing. If your customer, such as a well-known retail store, has a good reputation for paying their dues and if your profit margin is high enough, then you get the line of credit you need so that your supplier can provide you with the goods you require.

When Should You Get Purchase Order Financing?

In most cases, before applying for PO finance apparel companies should still try to get a traditional bank loan. Yet in reality, very few banks can get you the money you need quickly enough. Either the bank will be very reluctant to give you the funding you need, or their entire loan approval process is so slow that it won’t give you enough time to fill the order within the schedule indicated in the PO.

So if your company has a very small window of opportunity and you have no time to waste, you may as well apply for purchase order financing immediately. The process goes by more quickly, and this gives you the time you need to meet the specified delivery schedule requested by the customer.

Other Definite Advantages of PO Financing

The advantages of PO financing are well-known:

  1. You have a better chance of getting the money you need compared to securing a loan from a bank.
  2. The entire process is much quicker, so you don’t waste time in what may turn out to be a futile effort to gain the financing you need.
  3. The amount you need is based on known factors specified on the purchase order.

In many cases, when you apply for a loan you try to estimate the amount of money you need for working capital and for business growth. But with PO financing apparel companies can get their money on a “as needed” basis. Since you can easily calculate how much you need to have to pay your supplier, you don’t have to make a mistake in the amount of money you can ask for.

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How PO Funding International Lenders Can Solve Your Worries

Exporting can be a somewhat daunting endeavor, even though the foreign markets represent a great opportunity for tremendous growth. It can increase your sales and profits. It can offer you an expanded and diversified customer base. And it even offers some sort of stability to help you deal with the US economic situation. But you can only get these benefits if you know how to do it properly.

Nonetheless, more businesses in the US are taking the chance. In a 2010 small business survey, 52% of the respondents had sold goods or services outside the US. In 2013, it grew to 64%.

But it is not without its challenges. There are always some concerns, and for companies who export goods and services abroad here are a few of the more common problems which PO funding international lenders can help resolve:

  1. You’re not sure about getting paid. This is crucial, especially if you are relying on that payment to cover operational costs. While 69% of exporters ship their goods when they receive the full payment in advance, only 43% ship on a 30-day open account. Only 17% offer extended payment terms to customers overseas. Only 2% of exporters report that their banks would advance funds to them upon shipping the goods.

Accepting only advance payments can make sure you get the money you need to use as working capital, but this can severely limit the number of customers you get abroad. There aren’t that many overseas companies that can pay in advance, outside huge multinationals.

But with PO funding international, you can get the money right away. The funding company provides you with the working capital you need, so that you can cover the expenses involved in the deal. You get a percentage of the amount of the purchase order up front. This process is very quick, as it may only take two weeks or so.

  1. You’re not entirely sure what to do. Some people ask their embassy personnel for some guidance, but that doesn’t always work out well. But a PO funding international company will have the experience to guide you through the process. They’ll know all about the rules and regulations involved. They can offer you the advice you need to make sure that you do everything right, because after all this transaction involves their money too.
  2. You don’t want to carry more debt. More debt means your credit may be at risk. But this doesn’t apply to purchase order funding, because technically it’s not a loan at all. It’s not a loan, but rather a cash advance.

Selling abroad is really one way of making sure that your business growth is steady and assured. It can be a very confusing process, but with the purchase order funding you’ll get the cash flow you need to make it work.

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The PO Finance Apparel Distributors Need: How It Works

If you have a small business, then you need a plan for growth. That’s the way it works, even in the apparel industry. You try to secure new contacts and perhaps move into new markets. You try to provide more products and add new ones. And of course, you need to make sure that you have the capital to fund your business expansion.

This is where some apparel distributors can have a problem. For example, let’s say you’ve been doing a good business supplying garments to retailers in your area. Now that you’ve established your expertise, one customer now asks for you to supply a volume you’ve never done before. You know you’ve got the chops to arrange the deal to the customer’s satisfaction, but your problem is that you may not have the capital to fund this business opportunity.

Of course, you’ll try to get some money from your bank. After all, that’s where your company’s bank account is. But banks, for all their improvements lately, aren’t really all that enthusiastic about lending to small businesses.

You’ll need to make sure that your business is in order, and that your credit rating is absolutely tops. That goes for your personal credit rating too. And then they drag their feet before you even get your money—if you get your money. That’s a very big if.

So if you get a big order, what you need to do is to use that particular purchase order to get the money you need. With PO finance apparel distributors should know how it works. This is the process:

  1. You get the huge purchase order. Instead of saying no to your customer, you say yes. This is the growth you’ve been waiting for, and it’s an opportunity not to be missed, especially if it offers a very nice profit margin.
  2. You approach the PO financer. Some lenders actually specialize in PO finance apparel deals. You tell them about the order and they ask for some pertinent details about the deal.
  3. They check out the opportunity. They’ll first see if the purchase order is real, because there are some scammers about who fake purchase orders to get some money. Then they check out your customer’s ability and willingness to pay the order, as well as your supplier’s ability to supply what’s been asked for. There are some other factors, but these are crucial.
  4. You get the money you need. Actually, the money doesn’t really go to you at all, but directly to your supplier. Often this takes only a couple of weeks after you first contact the lender. It’s a stark contrast to how banks operate, since banks consider two weeks as part of the initial stages of the loan application.
  5. The supplier makes and delivers the goods. The lender oversees this stage too, to see that everything’s going according to plan.
  6. Your customer receives the goods. When they do, they pay the lender.
  7. You get your profit. The lender then takes out the amount they invested plus a small fee for their services, and then you pocket the profit.

That’s how the PO finance apparel deal works. It’s really that simple and that easy.


Apparel PO Funding Can Help You Take Advantage of Economic Growth

Apparel PO Funding Can Help You Take Advantage of Economic Growth

While the apparel industry is not completely spared from the financial challenges that the entire world is experiencing now, forecasts for the industry are generally optimistic for this year. In fact, according to a report filed by the Business Survey Committee of the Institute for Supply Management, the apparel industry is growing, and it is expected to continue growing for the foreseeable future. So, as a player in this industry, you should really consider apparel PO funding so that you can take advantage of this growth.

The State of the Apparel Industry

The report surveyed purchasing and supply executives in the country, and according to them the apparel industry may see even better days ahead.

  • Apparel can expect a growth of revenue for 2014.
  • Companies are operating today at an average of 82.3 percent of normal capacity. This is an increase from the average of 80.3 percent reported in December 2013. Apparel is the leading industry that report operating capacity levels much higher than the average.
  • Apparel is one of the industries that can expect increases in production capacity for the year.

However, if you are in the apparel distribution business then you also need to be aware of one important nugget mentioned in the report: The apparel industry should also brace itself for an increase in capital expenditures for 2014.

How Apparel PO Funding Can Help

The problem for many in the apparel business these days is that banks are still wary of lending money to them. This is especially true if you are a small business asking for a small loan, and not a megacorporation asking for a multi million dollar loan.

Sometimes businesses have turned to using credit cards for their working capital. But in most cases this is insufficient. The money you can get is often not enough, and then you still have to pay horrendous interest rates as a result.

That’s where apparel purchase order financing comes in. The process in its essence is simple. Let’s say you are an apparel distribution company, and you get a large order amounting to $200,000. This is great news obviously, but then, you have to pay your suppliers up front. If you don’t have the capital, then you may be forced to refuse the order.

On the other hand, you can use the purchase order to get the capital you need. The lender can advance you a percentage of that PO, or perhaps they even may be willing to advance you your capital needs as long as you meet certain milestones. When the buyer then receives the goods it ordered, the payment comes first to the lender, who takes its cut before the rest is passed on to you.

Advantages of PO Financing

Right away, you can see how PO financing can really help you. Without it, you may not be able to meet the requirements of the purchase order, and so you will have to forego all those potential profits. And since banks aren’t all that helpful, you stand a much better chance with purchase order financing lenders. The approval rate is much higher, and the process is much faster.


For purchase order finance options, visit our site by clicking here

Make Your Customers Happy with a Purchase Order Loan for International Orders

Click here for our purchase order case study.
Click here for our purchase order case study.

Fulfilling your customers’ needs is easy when you have overflowing capital, but the reality is that there will be times when money (capital) becomes scarce. Operating a business is always challenging, and there will be many hurdles that you have to go through. For instance, there will be times when you have to fulfill an international order, and this order may be so big that you will need more than your existing capital to complete it. If you don’t have access to the right purchase order loan for international orders, you may be forced to say no to your customer. Doing so will translate to opportunity loss and decreased goodwill.


The Challenge of Doing Business Globally

The reality is that if you want to operate on a global scale, you will need access to additional working capital that can help you meet the demands of your international customers. It’s a shame to say no to a customer that’s based overseas simply because you don’t have extra money to take care of additional shipping and export costs. This is why purchase order financing is available, and this type of financing is typically useful to the following types of businesses: 

  • Manufacturers
  • Exporters
  • Logistics/forwarding companies
  • Distributors
  • Re-sellers


Maximizing Your Purchase Orders

What’s good about knowing where to get a purchase order loan for international orders is that you get to have access to additional working capital without the added risk that usually come with loans. With this type of financing, what you do is essentially ‘sell’ your purchase orders to a lender that gives you ready cash in return.

This means that you can trade your purchase orders, which are still receivables at this point, into money that you can use right now. You don’t have to wait for your client to pay you, which may of course take some time. Whatever purchase loan you get, you can use it as working capital needed to fulfill that order. By turning your receivables into cash, you get to maximize every purchase order you get and satisfy your customers at the same time.


Additional Cash Flow Benefits

Getting purchase order loans means so much more than getting additional cash flow. In the long run, getting a purchase order loan for international orders means you’re minimizing your capital constraints and maximizing your company’s potential. It also means you’re gaining a competitive edge and making your business trustworthy in the eyes of your suppliers and customers. If the market knows you can be trusted, they will easily choose you over competition. In essence, adding a purchase order loan into your capital structure will pave the way for your business to grow.

If you want to know how you can apply for a purchase order loan, visit to find out what your options are. Getting international orders is a good thing because it not only gives you more profit but it also builds your reputation on a larger scale. Don’t limit what your business can do by getting purchase order loans specifically for international clients.

Purchase Order Finance for Maximum Flexibility

Purchase Order Financing ($500,000-$5 million)

Whether you have a large order to be produced in the U.S. or overseas, as long as the goods are pre-sold and the purchase order is non-cancellable, Neebo Capital can finance up to 100% of your cost. 

One of the realities that businesses normally face is the fact that cash runs out. For a business to operate properly, you need sufficient working capital that can cover all your operational expenses. But in a world of seasonal sales and unpredictable revenue, there are times when you really run out of funding. The sales will come much later, and you will need various sources of funding to support your operations in the mean time.

An example of this is when you have a larger than normal purchase order from a particular client, and you lack the cash flow to complete this order. Whether this is to buy raw materials, cover the manufacturing costs, or pay for the delivery, you will need to be very liquid. This is where purchase order finance comes in.

Who Benefits From Purchase Order Financing?

Purchase order financing enables all kinds of companies from various industries to have a bigger working capital, when needed. Those who will benefit from this type of arrangement consist mostly of product importers, exporters, resellers, distributors, wholesalers, manufacturers, jobbers, and other such companies that are required to deliver large purchase orders to clients. Sometimes, there are also seasonal changes in sales that make certain times of the year extra tight on the cash flow. For growing businesses that have little access to working capital and who need to focus this capital on other priorities like marketing or research and development, purchase order finance brings maximum flexibility.

The Advantage of Applying for Purchase Order Financing

Getting additional working capital is not all there is to purchase order financing. After all, when you need additional cash flow, there are many other options you can run to. But compared to other options like a bank line or a loan, purchase order financing gives you maximum flexibility.

Here are some of the advantages of turning to this financing method:

  • It’s a financial solution that increases your cash flow depending on how much you need, whether that’s $50,000 or even as high as $20,000,000.

  • At your convenience and when you need it the most, it removes the strain from your current working capital and frees it up for other more important priorities.

  • Whether your purchase order is domestic or international, you can get financing for 100% of what needs to be paid for, without having to wire money internationally or sell equity as a last resort.

  • You don’t have to get stressed about what collateral to offer banks, or adding more debt to your portfolio.

  • Your credit line will be granted based on the financial strength and credibility of the customers you are serving. This is different from loans and other financing methods wherein you constantly need to prove your credit worthiness.


Clearly, purchase order finance is a solution that’s out there for those who need their cash flow and working capital to be stretched, and it’s a solution that’s available for you when you need it.



Canada Purchase order finance loans – Fast Canadian P.O Loans

Canada purchase order finance loans help businesses in Canada to get the short-term funding they need. They get loans based on the purchase orders they have. If there are a number of customers who have placed orders, who are highly credible, then they can be leveraged to get business loans. Canada purchase order finance loans are a safe way for companies to lend money to small to mid-size businesses.


Purchase order financing is a financing alternative that can be a lifeline when the banks just aren’t lending anything out.
Purchase order financing is a financing alternative that can be a lifeline when the banks just aren’t lending anything out.

A purchase order finance loan can keep your business going even when you haven’t received the money from your accounts receivable department yet. You can get loans based on the credibility and guarantee of your customers’ ability to make the payments that you are due. The more customers you have, and the more payments you have stacked up, the better deals you can get, and the lower interest rates you can negotiate.


Purchase order financing is a financing alternative that is little-known, and it can be a lifeline that you use when the banks just aren’t lending anything out. For example, if your sales are growing faster than the cash flow can handle, it can be hard to fulfill large orders to big customers. To take care of these orders, you have to get the money from somewhere to manufacture the products that are going to be sold. Once you’ve got your purchase orders in hand, you can often use them to get the kind of loan that your business needs to fulfill those orders, and even expand in other ways.


Purchase order financing is a great solution when you need to get the cash gathered that you need to make your business grow. If you’re not alright with getting loans of any kind, then these loans are obviously not going to work for you. Let’s face it, some businesses just don’t like loans. However, these are some of the safest possible loans you can get. If you’ve already got the purchase orders in hand, you can be virtually guaranteed that you’ll be able to pay the loans back. Plus, you’ll get more favorable interest rates than other types of loans out there.


Purchase order financing isn’t a new thing, but lenders say that interest has blossomed in the past couple of years, because banks have tightened up their lending policies. The usual person to get a purchase order loan is a product wholesaler or product manufacturer who needs to deliver goods to large customers like national retailers or government agencies. For them, purchase order financing is a vital lifeline to help get their products moving and into customers’ hands.


Companies that are familiar with purchase order financing may say that they don’t care about their clients’ credit scores or if their businesses are completely underwater. They may only care about the transaction that they’re putting the money up to finance. If this is the kind of loan that looks good to your business, then there are plenty of companies who will help you out with this type of loan.

Canada Purchase Order Finance | PO Finance For Canadian Businesses

Canada purchase order finance
Canada purchase order finance companies take a look at your invoices, which are unpaid, and advance you cash based on them. With that cash, you can enter new markets and territories that are hard to get into or acquire business in readily.

This is a new and challenging economy, and it’s hard to find business, but there are new industry channels, markets, and territories to enter into because of the global nature of the marketplace. Some of those areas may be outside of Canada, and small businesses might want to enter foreign markets, after having some local success, but they might not have the money to do it.

That’s’ where Canada purchase order finance comes in. These companies can take a look at your invoices, which are unpaid, and advance you cash based on them. With that cash, you can enter new markets and territories that are hard to get into or acquire business in readily.


What Is Purchase Order Finance?


Every business owner faces the tough challenge of managing cash flow. One method that makes it much better is purchase order financing. It helps you get access to a lot of working capital in a fashion that is affordable, convenient, and quick. Companies might use purchase order finance to help support their business’s expansion, work with a big order surge in business, or just for company operating expenses. The method is especially well suited to developing companies that can’t authorized in the same way that big businesses can for company loans from banks. Financial institutions commonly award loans to big businesses, but they’re sometimes more hesitant to loan money to newly developing companies or companies that are getting off the ground quickly. Purchase order finance is your solution to help move your business off the ground from its low-level position so that you can take your business to a global level.


The Several Applications  Of Purchase Order Finance Solutions


Some companies may have inexperience in generating financing, a lack of working capital, or the requirement to keep customers and suppliers separate. Some of them might need a quick supply of cash in order to get a quick response. There is a good profit opportunity for small businesses if they can secure the purchase order finance that can help them get off the ground quickly enough too.


How Does Purchase Order Financing Work Exactly?


Purchase order financing has you issue letters of credit to suppliers of non-finished or finished goods, based on goods that have already been sold to a customer that is creditworthy. It can assist you in delivering on time, growing without selling your equity, getting any bank debt, and it can help you to increase your market share as well. Plus, you can start to see the money from purchase order finance in as little as one week instead of having to wait several months for bank loans. It makes the most sense to do this kind of arrangement if you are scared or unsure about your business or where it is going, and you need the cash to make sure that it springs forward and can enter new territories and markets without getting slowed down. You don’t want your business to falter. You need a lot of working capital.


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Fast Purchase order financing | We offer Purchase order finance solutions

Fast purchase order finance solutions
Purchase order finance programs are perfect for companies where the growth is in excess of the working capital available, or where seasonal sales spikes put a damper on cash flow, or where funding from the sources you’ve traditionally gotten it from is not available.

Several companies offer purchase order finance. It’s a natural part of doing business. There are a lot of companies that fill the role. It’s a potent financial tool.


For example, a supplier might want you to pay COD, and your customer might not be able to pay you for another one to two months. Simultaneously, shipping, packaging, and labor costs have to bet met. Purchase order finance services exist to make those deals not just available, but profitable as well.


You might have a confirmed order from a creditworthy customer, but you might not have the cash to fulfill it. That’s where a purchase order finance company comes into place. With purchase order finance, a company can send an advance of to 80% of the total buying cost to the supplier.  They either pay the supplier, or they open up a credit line. You send the goods, and they send the invoice to the customer. They grab the invoice payment from the client, and pay the balance between the money paid to your supplier and the order value to you. They subtract any cost or fees of cash used, after the payment comes in.


Purchase order financing lets companies have a short-term solution for funding the inventory necessary to end sales transactions.


Purchase order finance programs are perfect for companies where the growth is in excess of the working capital available, or where seasonal sales spikes put a damper on cash flow, or where funding from the sources you’ve traditionally gotten it from is not available.


Targeted purchase order financing can help with a number of things like funding 100% of the inventory cost, solving cash flow problems, finding alternatives to risky advances, and obtaining transactional credit lines from $500,000 to $50,000,000, or greater.


Purchase order finance solutions are available to a number of different kinds of companies like manufacturers, assemblers, distributors, and importers. If you’re mulling over between different companies, try to choose one with a strong track record, work with companies who have requisite experience in a number of different industries and over a long period of time, and choose a company that knows your niche specialty best.


Purchase order finance companies that have provided financing to companies in a number of industries are going to be your best bet. If you’re not quite sure about companies to go with, choose the companies that are going to offer you the best chances of a sure deal with a bunch of experience in purchase order financing. That’s the only real way you can be sure that you’re going to be working with a company that truly knows what they’re doing. Check for a company with at least ten years of experience so you can be sure to get the security of financing that comes with a trustworthy, reliable company. If you’re unsure about the prospects of the company you’ve chosen, then investigate their rating with the BBB or third-party review companies. A lot of these companies are so big that they’re not going to have ratings on the BBB so look into B2B rating guides online instead.

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