It’s not an easy task to find an appropriate Purchaser order financing provider if you are looking for it for the first time.
It is due to the fact that very few institutions specialise in this service and advertise PO financing as one of their main services.
While some banks and non-banks lenders may offer PO financing, they do not usually advertise it openly.
The first place to look for is financial institutions you are already dealing with, such as banks. Many commercial banks offer PO financing as an add-on service if you have a healthy working relationship with them. It is important that you ask specifically for PO financing service as most banks won’t advertise it.
It may also be a good option to look for institutions that provide loans and other financing options, such as accounts receivable (AR) financing as there is a bright chance for most of such institutions also to be interested in offering PO financing, especially to their trusted clients.
How to shortlist the best PO Financing Company?
In order to have a smooth financing experience, it is essential to spend some time in choosing the best service provider.
Try to get as much relevant detail as it is possible, especially gain answers to the following questions.
- Do they have an experienced and a specialist team to deal with PO financing?
- What are other related services?
- What is the breakdown of their overall fees for financing?
- What kind of credit check does the financing company carry out?
- How and when will they pay to the supplier?
- How and when will they receive from the customer?
- What are the repayment terms like? Fixed terms or payments from sales?
- Do they communicate directly with suppliers and customers?
Purchase order financing is a specialised financing tool which comes with specific terms and conditions and might provide various benefits over other types of short-term financing.
It is strongly recommended to fully understand all terms and make a thorough comparison with other available options before finally choosing any particular option.
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