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Purchase Order Financing is a financing option for companies that lack the funds needed to fulfill customer orders. Cash flow problems exist for many businesses, making it difficult to cover the costs of their purchase orders. Rather than turning away business, Purchase Order Financing allows your company the flexibility to fund a project with little to no upfront capital.
With SouthStar Capital, you receive 100% financing on Purchase Orders and access to the working capital needed to grow at an unlimited pace. We oversee and fund the fulfillment of orders each step of the process, from manufacturing, to shipping, and the delivery of the order to your customer. Once your customer receives their order and an invoice is sent, the financing facility then transitions into an Accounts Receivable relationship. Meaning, we would advance the amount of the order invoice to you, so your company has immediate working capital, rather than waiting to receive payment from your customer.
How does Purchase Order Financing work?
Once a valid Purchase Order is obtained from your client, funding can begin within a matter of days. As long as the company you are doing business with is of a high credit quality, we will not cap the amount of funding you can receive or limit your growth. 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. We monitor the fulfillment of purchase orders from start to finish. This is beneficial because having us as a third party verification of processes ensures quality and mitigates risks throughout the manufacturing, shipping, and delivery process. Once your order is completed and delivered, you may not receive final payment from your customer for 30 to 90 days.
How will your company operate or take on new jobs with your working capital tied up in invoices?
With SouthStar, our funding process doesn’t stop when the order is delivered. Once your client receives an invoice for their order, we transition our process into an Accounts Receivable relationship. Therefore, you are able to receive immediate working capital by advancing on your purchase order invoice, giving you the ability to take on new orders. Your customers will then pay the invoice amount when due, in-turn covering the cost of funding, so you remain debt free.
Benefits of SouthStar's Purchase Order Financing
- Same day approval/closing in 2-5 days
- Working capital is sent within 24 hours of receiving invoice
- Deal directly with decision makers
- 100% financing on purchase orders
- Deal with just one company from initial product creation to final payment
- Unlimited access to working capital, so you can focus on growing your business
- Challenged credit is a non-issue
- Retain 100% equity of your business
- Years in business is a non-issue
- Assigned account team for your company
- Save time and money with a third party managing and making payments to the manufacturer on your behalf
- Assistance in the process of International and Domestic issues
Purchase Order financing allows you to retain ownership by not giving up equity to individuals, private equity groups, or venture capitalists. Once a valid Purchase Order is obtained, SouthStar can advance working capital based on the face value of the purchase order, thereby eliminating the need for equity investors in your company.
"I had a great idea with huge market potential but I did not have any startup capital to fill Purchase Orders. I called SouthStar Capital looking for an equity investor so I could have capital to make my product to fill the ever increasing orders. SouthStar explain that I didn’t have to give up equity in my company in order to make my product. SouthStar structured a financial solution that paid to have my product manufactured and collected the invoice. I am now able to concentrate on sales while SouthStar handles the rest!"
– Gary, CEO of a Manufacturing Company