DSA Factors

What is Purchase Order Financing?

Unlike factoring which requires you to have receivables, purchase order financing is a way of getting an advance on only a purchase order.

While factoring is a great way of improving your cash flow by selling your accounts receivable, sometimes you will find yourself in a position when you need money even earlier.

With purchase order financing you can get an advance on a purchase order so that you have the funds you need to start manufacturing the merchandise or get a container released in order to fulfill the purchase order.

While most factoring companies only offer traditional accounts receivable factoring, DSA Factors is proud to offer PO financing in addition to factoring for our clients.

If you receive large purchase orders and don't have the funds available to release a container or purchase raw materials, PO financing may be the solution that you are looking for.

How PO Financing Works

3 Simple and Easy Steps

Step 1

Approval Request

Just like with traditional accounts receivable factoring, if you are looking for purchase order financing you need to submit your request to DSA Factors for approval.

Step 2

Advance on PO

Once approved, DSA Factors will provide you with an advance on the purchase order. You will determine exactly how much that advance will be, but typically it is about 50-60% of the purchase order.

Step 3

Factor Invoice

Once you fulfill the order you will factor the related invoice with DSA Factors. DSA will apply a portion of the invoice towards the loan we gave you for the purchase order, and will fund you for the remainder of the invoice.

Key Benefits of Purchase Order Financing

PO Financing can helping companies of all sizes, as well as both manufacturers and importers:

  • Manufacturers can use the advance to purchase raw materials or machinery
  • Importers can use the funds to get a container released from China or elsewhere
  • DSA Factors offers credit decissions in minutes, as opposed to months with a bank
  • You no longer need to worry about whether you can handle large orders
  • You choose how much you get funded and when you get it

Additionally you will also benefit after the initial PO financing through accounts receivable factoring:

  • Improve cash flow
  • Unlimited capital
  • Eliminate bad debts
  • Reduce operating expenses
  • Expand working capital financing
  • Improve management information
  • Factoring is fast and easy
  • Eliminate the need for bank loans or SBA loans
  • Alleviate time consuming activities such as credit checking, bookkeeping, and collections

Let us answer your questions regarding the essential benefits of our purchase order financing and accounts receivable factoring, including all costs and ease of start-up. At DSA you can always speak with a principal, we will never hand you over to an account manager. You can try us out with no long term obligations, so call today.

Contact Us Today

DSA Factors - Money to Make Your Company Grow!

PO Box 577520
Chicago, IL 60657

 773-248-9000

 773-248-9005

 info@dsafactors.com

 

Apply Now!