Order Financing

							                    Purchase-Order Financing Checklist
Purchase-order financing can provide the operating capital you need for supplies,
production and shipping of large orders. Here’s how it’s done:

First, is purchase-order financing for you? If some or all of the following
apply, then you should consider it:

       Are you a small- to medium-sized business that usually doesn’t have the
       funds for large orders?

       Have you pitched your product to a major retailer and gotten an order, but
       are unable to fill it because you’re short on production capital?

       Are you a reseller who can’t afford to buy the wholesale goods you need
       to fill a large purchase order?

       Are your clients reputable? Do you sell to the government?

       Is your client creditworthy?

       Do you have profit margins of 15-25 percent or more?

What to look for in a purchase-order financing company:

       Minimum and maximum funding limits. If a company only funds loans that
       are larger or smaller than you need, move on to another one.

       Eligibility requirements. If you don’t meet them, don’t waste your time
       applying for a loan.

       Compare your production and billing schedules to the lender’s repayment
       schedule. If they don’t mesh, don’t apply.

       Once you’ve found a company that works for you, be sure you can afford
       and be comfortable with its fees or interest rates.




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