WHAT IS PURCHASE ORDER FINANCING
Purchase Order (PO) Financing, is a type of commercial financing that allows a business to receive funding for a pre-ordered project using the purchase order from the client as collateral. Many times, small or growing businesses will not have the funds on hand that they need in order to purchase all of the materials necessary for a big job, nor can they obtain credit from a traditional financial institution based on their credit alone with only a purchase order in hand. The difference between PO financing and traditional bank financing is that PO financing bases its credit decision on the financial strength of your customer; a bank would focus on your finances alone regardless of any purchase order promising future income.