DSA Factors

What is Purchase Order Financing?

Unlike accounts receivable factoring which requires you to have receivables, purchase order financing is a way of getting an advance on only a purchase order.

While accounts receivable factoring is a great way of improving your cash flow by selling your accounts receivable, sometimes you will find yourself in a position when you need money even earlier.

With purchase order financing you can get an advance on a purchase order so that you have the funds you need to start manufacturing the merchandise or get a container released in order to fulfill the purchase order.

While most factoring companies only offer traditional accounts receivable factoring, DSA Factors is proud to offer PO financing in addition to accounts receivable factoring for our clients.

If you receive large purchase orders and don't have the funds available to release a container or purchase raw materials, PO financing may be the solution that you are looking for.

How Purchase Order Financing Works

3 Simple and Easy Steps

Step 1

Approval Request

When you have a large purchase order contact DSA Factors to request PO Financing.

Just like with traditional accounts receivable factoring, if you are looking for purchase order financing you need to submit your request to DSA Factors for approval.

Step 2

Advance on PO

DSA Factors will provide you the funding you need when you need it on your purchase order.

Once approved, DSA Factors will provide you with an advance on the purchase order. You will determine exactly how much that advance will be, but typically it is about 50-60% of the purchase order.

Step 3

Factor Invoice

Once you invoice your customer you will factor the invoice in order to pay off the advance on the purchase order.

Once you fulfill the order you will factor the related invoice with DSA Factors. DSA will apply a portion of the invoice towards the loan we gave you for the purchase order, and will fund you for the remainder of the invoice.

Key Benefits of Purchase Order Financing

Purchase order financing can help companies of all sizes, as well as both manufacturers and importers:

Manufacturers can use the advance to purchase raw materials or machinery

Importers can use the funds to get a container released from China or elsewhere

DSA Factors offers credit decisions in minutes, as opposed to months with a bank

You no longer need to worry about whether you can handle large orders

You choose how much you get funded and when you get it

Additionally you will also benefit after the initial purchase order financing through accounts receivable factoring:

Improve cash flow

Unlimited capital

Eliminate bad debts

Reduce operating expenses

Expand working capital financing

Improve management information

Factoring is fast and easy

Eliminate the need for bank loans or SBA loans

Alleviate time consuming activities such as credit checking, bookkeeping, and collections

Let us answer your questions regarding the essential benefits of our purchase order financing and accounts receivable factoring, including all costs and ease of start-up. At DSA you can always speak with a principal, we will never hand you over to an account manager. You can try us out with no long term obligations, so call today.