Purchase Order Financing: How Does It Work And Who Benefits From It?
Invoice factoring is provided for companies that provide services or products for customers and have a need for added cash flow. Purchase Order Financing is provided to eligible customers who meet a certain set of criteria. The factoring process accelerates the accounts receivable process, so that companies have immediate access to the necessary funding. Loan terms are developed according to projected cash receipts. Companies with a profit margin of at least 25 percent benefit from Purchase Order Financing. Why would a company benefit from purchase order financing? Purchase order financing contracts are available for companies that want to increase their […]
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