THE PURCHASE ORDER FINANCING PROCESS

First, you obtain a Purchase Order from a quality company that has agreed to accept your product or service.

Once the Purchase Order is received, you send the Purchase Order and supporting documentation (i.e. signed and dated Purchased Order) to SouthStar.

SouthStar will then perform due diligence on your customer to ensure they are credit worthy and have a history of paying once a product is received. SouthStar will also contact your customer to ensure the Purchase Order is valid and will be accepted once it arrives.

Once the Purchase Order is verified SouthStar will advance money to the third party manufacturer to cover the cost of goods and labor it takes to make the products for the Purchase Order. This can be one manufacturer or a combination of manufacturers and a company that assembles the final product.

Once the product is completed SouthStar will handle the shipping, customs clearance (if necessary) and final arrival of the product at a third party storage facility or your customer’s dock. Once the product arrives at your client’s dock, an invoice is sent to your customer and SouthStar.

SouthStar will then employ its Accounts Receivable Financing arm and advance more on the invoice to bring the total advanced to between 70 and 90 percent of the original Purchase Order amount.

Your client pays SouthStar the full amount of the invoice, then SouthStar retains a small fee and remits the balance back to your company.

First, you obtain a Purchase Order from a quality company that has agreed to accept your product or service.

Once the Purchase Order is received, you send the Purchase Order and supporting documentation (i.e. signed and dated Purchased Order) to SouthStar.

SouthStar will then perform due diligence on your customer to ensure they are credit worthy and have a history of paying once a product is received. SouthStar will also contact your customer to ensure the Purchase Order is valid and will be accepted once it arrives.

Once the Purchase Order is verified SouthStar will advance money to the third party manufacturer to cover the cost of goods and labor it takes to make the products for the Purchase Order. This can be one manufacturer or a combination of manufacturers and a company that assembles the final product.

Once the product is completed SouthStar will handle the shipping, customs clearance (if necessary) and final arrival of the product at a third party storage facility or your customer’s dock. Once the product arrives at your client’s dock, an invoice is sent to your customer and SouthStar.

SouthStar will then employ its Accounts Receivable Financing arm and advance more on the invoice to bring the total advanced to between 70 and 90 percent of the original Purchase Order amount.

Your client pays SouthStar the full amount of the invoice, then SouthStar retains a small fee and remits the balance back to your company.

Call or email us today to learn more about the Purchase Order Financing process and the benefits it can provide your company.

Purchase Order Financing

Learn how Purchase Order Financing works, what it is, and the advantage of working with SouthStar Capital.

Purchase Order Financing

Find out what our clients are saying about Purchase Order Financing with SouthStar Capital. Plus, real life success stories on business growth with Purchase Order Financing.

Purchase Order Financing

When considering if Purchase Order Financing is the right solution for obtaining working capital for your business, ask yourself these questions.

“My Department of Commerce put me in touch with SouthStar Capital and they worked with me to help fill a large Purchase Order that got my business up and running. As my cash flow improves I am slowly growing out of a Purchase Order relationship, but still utilize SouthStar’s Accounts Receivable Financing to this day.”

– Jeff, Operations Manager of a Fabric Manufacturer