An example of a relationship between Stak and our referral channels in the invoice factoring market would be a situation where an existing client has established a big new customer relationship.

The client’s current sales are easily financed under a factoring arrangement; but, with the new relationship from a corporate retailer, they are going to need a lot of capital to pay for the inventory in order to procure the stock to deliver. 

This type of funding injects capital further up the chain before fundable assets are created.

The opportunity is great for the client’s business but they need a solution to help finance the increased inventory to fulfil the larger orders.

The factoring (or other) lender wants to help but the orders are much larger than the asset base so they contact a purchase order finance company to discuss their new circumstances.

Stak provides these PO financing benefits:

• Offer a decision within days, not weeks or months.
• Fund without the approval of an outside bank, credit committee or a group of investors.
• Offer an alternative solution to selling equity in a business.
• Provides assistance and expertise in structuring complex funding scenarios.
• Can fund goods in process or production and finished inventory.

Typical terms to consider:

• Profit margin requirement: 20% (can be less, may need a deposit from a client)
• 100% financing of goods? Yes
• Do you factor invoices? No, but we partner with many factoring companies.

Stak works with new businesses, turnaround situations, or companies that have seasonal demands resulting in an extraordinary amount of working capital being needed.

Stak clients fulfil larger sales orders from customers and take advantage of supplier volume discounts knowing they have funding to cover the costs of production, shipping, duties, and logistics.

On the other end of the supply chain, local or international suppliers are assured that they will be paid and confidently begin production of goods and ship them without risk of non-payment.

Factoring paired with purchase order financing

Stak works in tandem with new or existing factors providers that advance on the accounts receivable created by utilising purchase order financing facilities.

This allows a factor’s client to purchase more inventory than their balance sheet allows and offers the factor the opportunity to provide even more factoring in the increasing verified receivables from large corporate buyers.

Need help fulfilling large sales orders? Ask Stak.

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Stak provides working capital to clients that sell to some of the largest buyers in Australia & overseas.