Purchase order factoring allows your business to accept the large orders that you have always been waiting for. If you are looking for purchase order factoring it is worth calling Smart Factoring Quotes.
How does purchase order factoring work?
If you have a confirmed order from a credit worthy customer a purchase order factoring company can pay your supplier, typically by way of a letter of credit, for the goods. When the goods are delivered to you the purchase order factoring company will require you to deliver the goods to your customer and raise an invoice. A traditional invoice finance facility would then be used to repay the letter of credit or loan against import. When your customer pays this repays the invoice finance facility.
The whole trade cycle is financed from the confirmed purchased order right through to your end customer paying.
Benefits of Purchase Order Factoring
- Peace of mind that payment is only made if the right quality and quantity of goods are delivered by your supplier.
- Ability to take on large lucrative orders.
- Credit checking of your end customer provides more peace of mind.
- Seamless financial support for your business from order right through to end customer payment.
