Purchase Order Finance: Is your small manufacturing or distribution business receiving orders from large retailers you are having difficulty filling or manufacturing because of their size? If so, purchase order finance may be a ready working capital solution for you. How Purchase Order Finance Works
Purchase order finance is used to finance the manufacture or purchase of goods where a firm, non-cancellable order exists from a large, creditworthy buyer. It is very often associated with offshore manufacturing of garments where a factory (contract manufacturer) requires the posting of a letter of credit to make goods destined for a large retailer. It is, however, just as commonly used for solely domestic transactions as well.