What are the core elements of production purchase order finance?

Despite the abundant liquidity in business financing, Purchase order finance remains an excellent tool for startups, growing companies with unexpected capital demands and those in a turnaround. PO funders rapidly employ 100% of the transaction working capital and operate as a cash-flow creation tool for companies that produce, buy, assemble and sell products. Often closely […]

The Chasm Between Purchase Order Finance and “Traditional” Supply Chain Financing

The misconceptions surrounding supply chain finance, trade finance and purchase order finance have grown since the misuse of terms. Providers are quick to market products across a broad spectrum of “keywords”” to attract potential prospects, confusing business owners, often resulting in inconsistent and mismatched debt facilities. Even business development managers (BDM) struggle to understand explanations […]

The mystery relationship between factors and purchase order financiers

Even seasoned veterans of purchase order financing can still be surprised by the misconception by some lenders and factors as to what purchase order financing is. Properly characterised as “structured inventory financing”, this insight will discuss how entrepreneurial lenders can lift the veil on the misconceptions of when to lean on a purchase order financing specialist. When […]

How Alternative Supply Chain Finance Companies Work

When a company wants to buy goods from a supplier, they need to find creative ways to pay for them if the cash is not immediately available. They can either apply for open credit terms (less common) or go searching for the working capital from equity partners, private investment firms, supply chain finance providers, banks […]

Term Loan Equity Release Update: Broker/Partners

Snapshot: Facility sizes: $50,000 – $5,000,000Maximum LVR: 75%Maximum term: 2 years (24 months)First mortgage rate: From 7.99% per annumCaveat/Second mortgage rate: From 1.5% per monthPurpose: Refinancing (defaults, end of term), bridge (rapid equity release), ATO debts, non-residents, etc Stak partners are enjoying a higher than expected volume of short-term funding inquiries since the credit tightening. We’re […]

SME suppliers to Defence can accept larger contracts with Purchase Order Finance

Landing a large defence contract should be cause for celebration, but what if it’s larger than you can handle? There are over 2,000 small and medium enterprises (SMEs) throughout Australia providing services such as software development, precision manufacturing and specialist engineering for the defence industry. Many of these businesses do not work directly with Defence, […]