Purchase Order Finance

Purchase Order (PO) Finance funds business transactions domestically and overseas based purely on your opportunities instead of your assets or trading history.

You don’t need assets or security to grow your business. If you have firm orders, a solid customer, new contracts or reliable suppliers we can provide funding based purely on your opportunities.

Take on larger orders

Purchase Order Finance assist you with growth by completing orders and contracts locally or internationally that you would normally be unable to fulfill.

We can also free-up cash for business expenses (such as wages, insurance, etc), by covering 100% of your supplier costs.

This allows you to deliver bigger orders.

So what’s the catch? There is none. All you need is a solid order from a creditworthy client.

Purchase Order Financing allows you to:

  • Increase turnover without using existing capital reserves.
  • Place larger orders enabling volume discounts & enhances customer/supplier relationships
  • Ensure quality controls and delivery times are met ensuring a smoother supply chain.

How it works

It works by considering your purchase order to be collateral, and providing a letter of credit straight to your supplier. Your supplier will usually ship directly to your end customer (who must be a trustworthy, established business or government entity). When your customer makes payment, the transaction is settled and you receive a majority share of the proceeds.

General Outline

  1. You receive a large purchase order from your customer
  2. AR Trade Finance then verifies with your customer the validity of the purchase order
  3. We open a Letter of Credit to your customer
  4. Your supplier then ships the completed goods to your customer
  5. Your customer then pays us for the goods
  6. AR Trade Finance then pays you the profit


Types of Businesses that should consider Purchase Order Finance

Australian resellers, wholesalers & manufacturers can use purchase order finance to fund large orders to promote growth beyond their normal volumes. Designed to bridge the cash flow gap between your initial order through to final payment from your customer.

Need to know more? phone (02) 8074 2674 or complete our quick inquiry form

 

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