Purchase Orders

Purchase Order Finance is a short-term financial solution used to finance the purchase or manufacture of specific goods that have been pre-sold by the client to its credit worthy end customer. Funding involves issuing letters of credit or providing funds that allow clients to secure the inventory they need to fulfill pending orders.

Example: an IT company might use purchase order factoring to purchase wire needed to construct a city block wire system ordered by a municipality.

JC Funding has the experience to determine timeline needs and pinpoint exactly how your process can be fulfilled with our funding. If you need help with:

  • procurement orders
  • drop ship and direct order shipments
  • contracts for service

We can help.

A Financing Tool for Your Business

Purchase order financing is available to all industries that provide product. Common industries include industrial and manufacturing, wholesale distributors, import and exporters, governments, and apparel and retail.

We evaluate every industry differently because no purchase order transaction timeline is the same. Your business must sell to a good credit-worthy account debtor (customer), and have a purchase order that can be verified or has an acceptance (signed off) by the account debtor. Purchase orders for service only are generally declined.

How It Works

Once you become a JC Funding client, factoring your purchase orders for immediate cash is easy. Here’s how it works:

  1. Your customer submits a purchase order to you.
  2. You submit the purchase order for purchase order factoring.
  3. A payment is made to your supplier on your behalf to cover the cost.
  4. The supplier delivers the materials for production.
  5. The product is produced and deliver the product(s) to your customer.
  6. You submit an invoice corresponding to the purchase order.
  7. The purchase order is the fulfilled and an invoice is verified and advanced upon.
  8. When the payment is receives in full, the amount of the invoice advance and the factoring fee are deducted, then the remainder (the invoice reserve) is paid back to you.

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