Purchase Order Financing

What is it?

Purchase Order Financing allows your company the flexibility to grow at an unlimited pace and operate with little capital invested on the front end of the manufacturing process or large scale materials purchase.  Your company can face cash flow problems when a manufacturer requires a portion of the payment upfront before the product is made, as well as when a vendor, retailer/wholesaler or commercial contractor has a large expenditure prior to the delivery of goods for an end user.  Purchase order financing allows your company the flexibility to fund a project with little to no upfront capital.

How does it work?

Once a valid Purchase Order is obtained from your client, funding can begin within a matter of days.  As long as the company with which you are doing business is of a high credit quality, we will not limit your growth by capping the amount of funding you can receive.  This allows you to focus on sales and move your business forward without any concern about how you will obtain the next round of financing.  It is also advantageous to use Third Party verification processes that will ensure quality and mitigate risks throughout the manufacturing and shipping process.  SouthStar Capital will monitor and verify shipments throughout the financing process.

Once your product is completed and ready to ship, final payment still has not been made by the end user and most likely will not be made for 30 to 45 days.  SouthStar Capital can then advance capital based on the amount of the invoice through our Accounts Receivable Factoring Division, therefore increasing cash flow once again.

Retain Equity!

Purchase Order financing allows you to retain ownership by not giving up equity to individuals or venture capitalists.  Once a valid Purchase Order is obtained, SouthStar Capital can advance working capital based on the face value of the purchase order, thereby eliminating the need for equity investors in your company.

Imagine having:

• a supply of working capital so you and your team can focus on generating sales
• a third party who will make payments to the manufacturer on your behalf
• to deal with one company from initial product creation to final payment
• the ability to save time and money by allowing a third party to handle day to day accounts payable
• working capital within a matter of days of generating a Purchase Order
• the ability to concentrate on managing your business and not having to worry about manufacturing

Contact SouthStar Capital today to discuss how Purchase Order Financing can assist your company.