IMM Purchase Order Finance: Advances up 80% of the Sales Value of your Purchase Orders with fees as low as 1%.
Have you ever received an order from a customer that you wanted to fill, but could not because the cash outlay was too great to complete the order so you had to pass on the sale?
This happens many times to many companies. No matter how big or small your company is, if you receive a Purchase Order that is huge and you cannot fill it, this can hurt you with future order with that customer as well.
PO Finance is designed to assist bridge the gap between the time your customer pays you and the time you have to pay your supplier. Purchase Order Funding can help your company compete on any scale. It does not matter if you are a large multi-national company or a Small Business owner, fill out the form below and get your Purchase Order Quote today.
Purchase Order Finance Questions and Answers
- What does IMM Financial, an International Purchase Order Finance Company, offer?
- Why would I want to use Purchase Order Financing?
- What transactions qualify to PO Funding?
- What kinds of clients use Purchase Order Factoring?
- Is the application process for PO Finance as cumbersome as getting a Commercial Bank Loan?
- What Benefits will I receive if I were to use the services of a PO Finance Company?
- I have customers in several different countries; will your Purchase Order Funding Program work with these Purchase Orders as well?
- How long does it take to get set up with Purchase Order Financing?
- How exactly does Financing Purchase Orders work?
- What would the principle reason be that I should want deal with Purchase Order Factoring Companies?
1. What does IMM Financial, an International Purchase Order Finance Company, offer?
IMM Financial offers numerous financial products including International Letters of Credit. From Documentary Credit, Purchase Order Finance, Export Finance, Accounts Receivable Factoring, Accounts Receivable Management, Debtor-In-Possession Financing (DIP Financing), Government Receivables Financing, Merchant Card Advances, Equipment Leasing, and more. With several years of experience among Commercial Finance Companies we will share our insight into market to ensure the Financial products that you use fit your requirements.
2. Why would I want to use Purchase Order Financing?
You may have orders that you cannot fill due to financial constraints or perhaps payment terms with your suppliers and your customers do not match up. With PO Finance you can use Bridge Finance to cover the gap between the terms.
3. What transactions qualify to PO Funding?
To qualify for Purchase Order Finance, you must have a tangible product that you are selling. The finished product must be purchased from your manufacturer complete and then drop shipped to the end customer. PO Finance is not for services or products that need additional processing before they are shipped to the end customer.
4. What kinds of clients use Purchase Order Factoring?
We provide Purchase Order Finance Services to sever-al industries such as:
5. Is the application process for PO Finance as cumbersome as getting a bank loan?
No, the process is not nearly as difficult as applying for a loan at your bank. The principal condition is that your customers sell their products to creditworthy companies and that with terms of sale are less than 90 days.
6. What Benefits will I receive if I were to use the services of a PO Finance Company?
The most significant benefit to utilizing Purchase Order Finance is that you will be able to fulfill Purchase Orders that you may not have the capacity to complete otherwise. For a small percentage of the dollar amount of your transaction, you will be able to seamlessly complete the transaction without jeopardizing the relationship of your suppliers or customers.
7. I have customers in several different countries; will your Purchase Order Funding Program work with these Purchase Orders as well?
Yes, we have the capacity to work with Purchase Order Customers worldwide.
8. How long does it take to get set up with Purchase Order Financing?
In most cases when a full application has been submitted the average turnaround time from the initial conversation about Purchase Order Financing with an Account Executive until your Purchase Order Account is set up will be around 5 to 10 business days.
9. How exactly does Financing Purchase Orders work?
The actual transaction not that complicated. When you have the actual Purchase Order in your possession you advise the Purchase Order Finance Company to start the process. The initial thing to do is confirm the Purchase Order and verify the creditworthiness of the actual purchaser. Assuming the credit review is acceptable, the transaction will proceed like this:
The Purchase Order Financing Company will create a Letter of Credit to the beneficiary, which will be the supplier. The Letter of Credit will verify that the payment to them is guaranteed by them or their bank. This is assuming the supplier will deliver the end product within the specifications of the end buyer. In nearly all cases, suppliers will be happy to accept a Letters of Credit from a Financial Institution as payment.
The manufacturer builds the goods and ships it as specified as per the end customers specifications.
The end customer will receive the finished goods and will accept them. The manufacturer will be paid by liquidating the Letter of Credit.
Your customer will then remit payment for the satisfied Purchase Order as per the Terms and Conditions of Sale. The PO Funding Company will be made whole and paid for their Financial Services and the remaining funds go to your Company.
Perhaps the best feature of Purchase Order Funding is that many times the client seeking the PO Funding will have very little out of pocket expenditures. This is a scenario where you will be able to complete the transaction using other people’s money for your transaction.
In nearly all cases, Purchase Order Finance is combined with Accounts Receivable Factoring once the product has been delivered to the final customer because at this time, the Purchase Order has been converted to an Accounts Receivable until payment has been remitted for the order.
10. What would the principle reason be that I should want deal with Purchase Order Factoring Companies?
The most apparent reason would be simply that unless your company has the financial resources to complete the transaction, a third party finance company such as Purchase Order Finance Companies are necessary if you wish to complete the transaction. This service is used by all sizes of companies from very small operations to very large corporations. Even if you do have the resources, often it is better to use other people’s money so you can make better use of your own.