P.O. Finance

Purchase Order Finance generates working capital to pay for finished goods or components based on your customer’s purchase order. With this form of financing, the P.O. finance company would pay your supplier to produce and ship goods so you can fulfill an order from a customer. Once you fulfill the order, you invoice your customer and send a copy to the P.O. finance company. That P.O. finance company collects the payment for that invoice and returns the payment to you, minus a fee. Often times P.O. finance companies will join forces with a factor to fund and collect the receivable.

Production Finance

This specialized form of finance creates cash flow to help you purchase raw materials and get your product out the door. Production Finance is used when you require additional working capital to pay vendors to complete an order. A production finance company will pay suppliers directly for raw materials and components and, in unique circumstances, potentially cover a portion of labor. Once you invoice your customer, you turn collection over to the production financier. It will collect payment and forward it to you, minus a finance fee.

Supply Chain Finance

Growing quickly? This form of financing helps global companies and their trading partners boost production volumes and process orders quickly without running out of cash. It generally increases the efficiency of the supply chain process by lowering the end cost of the process and reducing disputes and errors.

Supply Chain Financing is a smart option for companies that produce, handle and distribute goods and/or products in a number of countries. Because of our relationships with financing and logistics companies throughout the world, we are able to help our clients increase borrowing eligibility and speed of funding.

Commodities Finance

This type of financing assists clients that have a contract to purchase a commodity but do not have the working capital to purchase the goods from the supplier. In most cases, the finance company will structure a “back-to-back” transaction where the letter of credit to the supplier mirrors the terms of the letter of credit from the buyer.

Contract Financing

Companies with construction, government or commercial contracts often need working capital upfront to fulfill them. Based on the terms of the agreement, businesses with a signed contract can use contract finance to get a payment advance from a lender so they can pay suppliers, laborers or other intermediaries for goods or services.

Forfaiting

Forfaiting is a transaction-based operation involving exporters. Forfaiting is typically used when exporters grant terms over 180 days. Exporters often use forfeiting to increase cash flow and protect against political and commercial risk.