Purchase Order Funding
Our clients use purchase order funding as a source of capital to acquire raw materials or finished goods to fulfill their customer’s orders. Purchase order funding advances 100% cost of goods or 50-70% of Purchase Order value.
A Purchase Order (P.O.) is a request from a buyer to a seller to provide goods or services. A typical purchase order would list the amount of goods or services needed and the terms and conditions of delivery and payment.When a business receives an order for a product or service, it galvanizes its resources to fill the order. At times, a business may find itself in a position where it is unable to fulfill a customer’s order because it lacks the required materials or the money to acquire them, and runs the risks of losing the order and customer. In such a case, the Alpha Capital Purchase Order Funding program can help.
Purchase Order Funding is similar to invoice factoring, adding the advantage of an earlier advance of funds to fulfill your customers order. Funding is provided upon receipt of a valid purchase order rather than waiting until the order has been shipped and invoiced.