Commerce Commercial Credit provides purchase order finance for clients that are in need of a cash flow shortfall during peak sales cycles.
Purchase order financing is a variant of traditional invoice factoring. It is an effective short-term financing tool when a company is short of cash to pay for goods or materials needed to fulfill customer’s order. It is quite common for suppliers to demand payments on cash-on-delivery terms while customers seek at least 30 to 60 days time to pay their invoices. Our clients sometimes fall into this tight cash flow situation for a short period of time and they may opt to utilize our po finance program. Purchase Order Financing Rates Starting At 1.5% – 3%.
Purchase Order Financing Criteria:
- Must be in business for at sleast one year.
- Must have experience and previous transactions with client or other similar clients.
- Must have at least an initial $100,000 transaction minimum.
- Must have a viable purchase order from a credit worthy customer or a Letter of Credit that satisfies our criteria.
- Must retain a minimum of 25% profit.
- Must be a USA company.
Purchase Order Financing that will be considered for funding:
- Industrial and Manufacturing
- Wholesale distributors/ importers and exporters
- Government Contracts
- Service Contracts
- Retail and Apparel
- Direct shipment/Drop ship orders
- Project funding for the following costs:
- Raw Materials
- Components and Sub-Assemblies Project-specific Labor
- Finished Goods
- Direct Manufacturing
- Letters of Credit
- Letters of Guarantee
Why Choose Us?
Fast Approval. Easy set-up. Flexible Terms.
Receivable Factoring Rates* as low as 0.69% – 4.9%
Optional Structured Rate at Prime Rate +2% & Admin Fee
Commerce Commercial Credit is proud to be your premier alternative finance company for purchase order funding. With our proven platform, we can provide a dependable form of short-term capital for you to access. We are successful at partnering with clients who need to bridge the cost of supplies, materials and goods necessary to fulfill a customer order. Our focus is driven by making sure your business continues to operate fully without delay.
Commerce Commercial Credit’s funding methods through purchase orders allow our clients to generate sales beyond their current financial capabilities. Our team of financial experts works diligently to provide a solid growth platform even as tight credit markets from other sources begin to loosen. Even with a sterling business rating, some financial sources are simply not available. But, you can depend on Commerce Commercial in good times and not so good times.
You Can Qualify with Commerce Commercial Credit
Unlike traditional qualifying standards that deny you access to capital even before you apply, this unique form of financing is a tremendous source of help. Sometimes, you just need a little more financing that is not available from banks. Factoring is one option, but only after you have generated an invoice for customers to pay.
You must purchase the goods, have them transported to the end buyer and mail the invoice. But, how will you get the materials to sell the goods? The answer is through purchase order funding from Commerce Commercial Credit. We approve of your business and the capital you need to make it work.
As a growing company, you need funds that will support the entire flow of your product cycle, not just one part. Our funding solution covers the cost of goods through the receivable period. You will never need to borrow from any other funding source to handle presold transactions. We make sure that your business is not strapped for cash that will ultimately cost you business with important customers.
Why Your Company Needs Purchase Order Funding from Commerce Commercial Credit
It is the nightmare of every business owner: Your company lands a major order through a government contract or from a corporation, but lack the money to cover manufacturing and delivery expenses. If your cash flow is weak and you are unable to find cash fast – your company risks losing the order to a competitor. You may also lose the opportunity to have a long-term customer relationship.
Being stuck in this situation leads to the perfect alternative to financing purchase orders that will allow the transaction to succeed. Purchase order funding is becoming more accessible for companies like yours that cannot wait for bank lending to improve. There are many companies offering some type of purchase order funding, but few can match the quality, exceptional service and proven track record that is the hallmark of Commerce Commercial Credit.
The financing that you receive from our funding of your purchase orders can be used to pay intermediaries for the goods or services they provide. In most cases, you will need purchase order funding for:
- Additional working capital to cover labor and supplier costs
- An immediate response to cover an important sale
- Avoiding more credit risk from domestic or foreign transactions
- The opportunity to make more profits
Commerce Commercial Credit understands that these reasons and more can mean the difference between failure and success. We will partner with you to fulfill all of your funding needs. Our service fills the cash flow gap caused by growth spurts and seasonal sales spikes. Working capital that you are saving for mission critical operations such as equipment, R&D or manufacturing goes untouched because you can access another viable source.
Even if your business credit rating has soured in recent years, you can look to Commerce Commercial Credit as a helpful source. Sometimes, it is that one all-important deal that can turn things around – including your business credit rating. Our evaluation is primarily of the credit rating of your customer, not your company. We also look at your experience with the same or similar clients and the length of time that you have been in business.
What Business Instruments are Considered for Purchase Order Funding Transactions?
There are many business instruments that we will consider when processing a purchase order funding transaction. You will find something from our long list that matches your current situation:
- Letters of Credit
- Finished goods or raw materials
- Service contracts or government contracts
- Drop ship orders or direct shipments
- Industrial, manufacturing, retail and apparel
- Project funding to cover: overhead, shipping, direct manufacturing, deposits, components, sub assemblies, project-specific labor
- Letters of Guarantee
What Makes Your Business a Good Candidate for Purchase Order Funding?
Having the ability to support unlimited sales might seem impossible when you are keeping your business afloat with limited resources. An often overlooked funding source is the use of purchase orders. Funding through this avenue gives you the flexibility to handle large orders. Several conditions may factor into why this is a good option for your company
The first is the type of business such as being a government contractor, wholesaler, distributor or a reseller of manufactured products. With a tight cash flow, using your purchase orders can provide the capital you need. Another condition that makes you a good candidate for this type of funding is the creditworthiness of your customer. The stability of customers that place orders with you will help seal the deal.
Some suppliers may bill you for certain raw materials or goods. Others require payment upfront – money that you might not have to spare, but Commerce Commercial Credit does. Lastly, purchase order funding might be a good option for you because it allows you to profit from a large order opportunity.
Purchase Order Funding Explained
Purchase order funding is a simple way to resolve financial issues that may prevent you from fulfilling a large order. Our purchase order process is simple and brings you full circle to profits.
- No new debt – We use the purchase order as collateral to cover the cost of you fulfilling the order.
- We will issue a guaranteed form of payment such as a Letter of Credit directly to the supplier.
- You can fulfill the order without having to pay money upfront.
- We gladly remit payment to you so that your business remains profitable without incurring more debt.
- This financial tool allows you to continue to grow without constraints that can prevent businesses from going to the next level. We willingly finance purchase orders of any size after an initial $100,000 minimum.
Commerce Commercial Credit Has a Proven Method to Fund Your Business When You Need it Most!
Commerce Commercial Credit has a proven method of turning purchase orders into real cash. Our clients successfully grow their sales numbers and business without the constraints caused by credit and cash flow problems. With our proven method of success, you can fuel your business with the cash to pay suppliers and fulfill orders.
Learn More Today
Commerce Commercial Credit does more than simply finance your purchase orders. We have industry knowledge that extends to many types of working capital solutions that are helpful to businesses in an array of industries. We understand your business needs and will construct the right plan that meets your current needs and will keep you moving forward.
Our purchase order funding solutions have helped importers, manufacturers, assemblers and distributors. With a solid track record in the financial services industry, our clients support many diverse industries including retail, apparel, food products and hardware. We can finance work in process or provide Letters of Credit to finance domestic purchases, and import and export trade transactions.
If you need capital to deliver a purchase order that is crucial to your business, look no further than Commerce Commercial Credit. We can do more than traditional banks by recognizing the substantial equity of you business and its future potential.