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What is Purchase Order Financing and How Does it Work

Purchase order financing (PO financing) is an advance from a financing institution that pays your suppliers for goods you’re reselling or distributing to a customer who has completed a written purchase order. You can finance up to 100% of the purchase order costs with typical rates falling between 1.8% and 6% per month.

In this article, we’re going to discuss how PO financing works, when you might want to consider purchase order financing, and what the basic terms and qualification requirements typically are.

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