Purchase Order Financing and Invoice Factoring - Cash Advance Tools for Business

Posted by Steve Barthol on Wed, Apr 23, 2014 @ 06:56 AM

So what is purchase order financing and how does it differ from invoice factoring? Both are viable solutions for when sales growth exceeds working capital but each option has slightly different ways to benefit your business.

PO funding is an excellent answer as a short-term financing option if you meet the necessary criteria to qualify. It enables companies to pay suppliers immediately, rather than using cash reserves. Sometimes factors such as seasonality or large unexpected orders will put a strain on the company cash flow and therefore the ability to fulfill valuable potential sales. Without easy access to readily accessible working capital your business risks losing orders from customers.

So how does this differ from invoice factoring? In order to factor you must have created an invoice and provided proof of delivery of any goods or services prior to receiving an advance on your accounts receivables. This is a great way to receive a cash advance on your invoices that would not normally be paid for a further 60 – 90 days. However, if that unexpected order comes in, it may be worth considering purchase order funding as another possible option to fund the purchase of goods to be re-sold to your customer prior to delivery.

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Topics: Alternative Financing, About Invoice Factoring, Purchase Order Financing

Secure the Order with Invoice Factoring or PO Financing

Posted by Aaron Zahedani on Wed, Dec 11, 2013 @ 07:00 AM

How can I fulfill my large orders when cash flow is tight?

The dilemma for many manufacturers is the lack of available cash flow to buy raw materials in order to complete large orders. It is also an issue for distributors or wholesalers lacking funds to pay manufacturers to produce goods.

Lack of available funds can mean losing valuable business you know you are capable of completing. It could also seriously jeopardize future orders with existing customers. Purchase order funding and invoice factoring can both be alternative financing options worth considering.

So what is the difference?

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Topics: Alternative Financing, Cash Flow Solution, About Invoice Factoring, Purchase Order Financing, Financing Government Contractors

Why Government Contracting is Good For Business

Posted by Gil Oliva on Fri, Oct 25, 2013 @ 07:45 AM

Federal spending is healthy which means excellent opportunities for government contractors.

So is the United States Government one of your best customers? If not, it may be time to consider the benefits.

Getting your foot in the door may seem daunting, but once you have made the decision to go after contracts with the U.S. Government, the procedure is well documented, and relatively simple to follow. Check out our earlier blog covering tips on the bid process, and useful links to help explain the process. 

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Topics: Alternative Financing, Cash Flow, How to Grow Your Business, About Invoice Factoring

Increasing Efficiency – Invoice Factoring has the Answer

Posted by Aaron Zahedani on Fri, Oct 18, 2013 @ 07:45 AM


Can factoring your accounts receivable really increase efficiency? There are fees attached to factoring after all, and does invoice factoring really end up being a cost effective answer that genuinely makes a company more profitable?

The simple answer is yes!

Efficiency is the driving force behind success. Our society has come to expect ‘instant’ results. We order products from the Internet, and companies like Zappo’s have set the bar high, and lead us to expect delivery of items we order the very next day. We feel disappointed if we have to wait too long to receive items we sometimes didn’t even know we wanted!

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Topics: Alternative Financing, Cash Flow, Business Growth, About Invoice Factoring

Managing the Cash Flow Challenge

Posted by Gil Oliva on Wed, Oct 09, 2013 @ 06:45 AM

Helping Manufacturing Companies Grow

As a manufacturer, poor cash flow management can really become an issue at two critical times: 

  • As you start out

  • As you start to grow

In both scenarios, you are more than likely going to take on long, and short-term debt, to finance your fixed and working capital requirements. Financing for manufacturing companies comes in many forms, let’s look at the reasons manufacturing financing is necessary. 

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Topics: Alternative Financing, Factoring Companies, Manufacturing and Distribution Financing, About Invoice Factoring

The Advantages of Invoice Factoring and How to Keep the Money Flowing

Posted by Gil Oliva on Fri, Oct 04, 2013 @ 06:45 AM

Back to Basics  

The benefits of factoring are readily available to all who are interested. The process is easy to understand and many companies both large and small, as well as start-ups, are taking advantage of factoring their invoices, not just to survive, but also to grow.  

Let’s take a moment to highlight the benefits of factoring and why it is such a valuable tool.  

  • Factoring takes your accounts receivable, and turns it into available cash

  • Factoring reduces your potential liabilities and therefore increases the amount of equity held in your business

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Topics: Alternative Financing, Cash Flow, About Invoice Factoring

Financing for Distribution – A Fine Balance

Posted by Aaron Zahedani on Wed, Oct 02, 2013 @ 07:00 AM

You are in the business of distribution, which makes you the master of time management! Not only that, you are more than likely able to juggle the many unpredictable elements that go into making your company a success. 

What is involved, in simple terms?  

  • It’s all about consumer demand

  • Holding the right amount of inventory

  • Anticipating of the needs of your customers

Time must be carefully managed to make sure inventory arrives exactly when it is needed, in the correct amounts! But your customers are not necessarily so precise when it comes to paying their invoices, many government and commercial customers asking for 30 to 60 days to make payment on an invoice.

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Topics: Alternative Financing, Manufacturing and Distribution Financing, How to Grow Your Business, About Invoice Factoring

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