Our Purchase Order Finance program is used to finance the purchase or manufacture of specific goods that have been presold by our clients to their credit worthy customers.  Typically, this structure is combined with one of our Account Receivable Factoring programs to finance the entire trade transaction or trade cycle*.

Typical clients include manufacturers, distributors, wholesalers, importers, and exporters of finished goods.

Purchase Order Finance can revolutionize your growing business by increasing working capital needed to support and enhance sales, increasing product availability, creating flexible credit terms for your customers and allowing your business to grow and better compete within its industry.

With the power of Purchase Order Financing, your firm will embrace growth with the financial ability to accept larger orders, not miss sales opportunities due to a lack of working capital.  Our customized program protects your firm from the operational risks that growing pains often create, enabling you to become a more valuable and reliable vendor to your customers.

Typical Client Profile

• Working capital strain due to insufficient credit lines from bank
• Immediate growth opportunity with a product, customer, or market share
• Proven management record and solid relationships with their suppliers
• Sells finished goods to creditworthy buyers
• Losing sales and missing sales opportunities
• Backlog of orders
• Earning a gross margin of at least 20%
• Trade cycle* of 60-150 days, or more
• Annual sales ranging from $1 million to $100 million

Client Benefits

• More net profit due to increased sales
• Increased buying power (better prices, better delivery and better terms) from your suppliers because we structure 100% guaranteed supplier payment to support purchase orders, through letters of credit, wire transfers, letters of guarantee, and other supplier credit tools
• Improved cash flow because you have no cash out-of-pocket when placing orders - 100% inventory financing
• Ability to fill larger orders from big customers and support the high seasonal demands of your industry
• Receive immediate cash flow upon delivery of goods when combined with one of our factoring programs -- while being able to offer flexible terms to your customers
• Maintain all equity and control of your business that has yet to reach its growth goals

We can help your business grow. Call us to learn more about Capstone.

* Trade cycle – The duration of time that a company receives an order from a customer, orders goods from their supplier, delivers goods and receives payment from the customer.