Purchase Order Financing in Florida

Purchase Order Financing, Business Line of Credit No Minimum and No Maximum Amount No Long-Term Contracts
Graco Commercial Capital is your source for purchase order financing in Florida. We are a non-bank growth capital finance solution that is not focused on the balance sheet but on the sales opportunities ahead. We offer liquidity when traditional credit sources can't. We finance based on the strength of POs or historic sales, the economics of those sales, and our client's ability to perform if provided sufficient growth capital. Moreover, we offer liquidity that is not available from traditional lenders. Learn more about who we are and what we do.

Benefits of Purchase Order Financing

  • Ability to buy inventory and grow sales without being limited by existing capital.
  • Coverage of up to 100% of the inventory cost of goods to fulfill sales.
  • Company growth without increased bank debt or selling equity.
  • Timely deliveries to customers.
  • Increased market share.
  • Larger profits by fulfilling larger orders.
  • Fast, flexible funding.
  • Assurance for overseas manufacturers in the production of goods.
  • Support during company turnaround.
  • Help in managing cash flow during seasonal sales.

Accounts Receivable Financing

Accounts receivable financing allows your business to access a revolving line of credit based on the value of your outstanding receivables. Our program offers flexible repayment terms, has low minimum requirements to qualify, and can fund your business as soon as the same day.

Business Line of Credit

A business line of credit is a great purchase order financing solution, even if you already have access to capital, because of its flexibility in solving short-term cash flow needs. The best business lines of credit are available to borrowers quickly, carry no fees if they are unused, and can be a terrific solution for working capital expenses like payroll or inventory.

Short-Term Business Loan

Short-term business loans offer borrowers a financing solution with a fixed repayment term and predictable costs for larger projects that require a lump sum of capital. Several lenders provide these loans, but the best short-term business loans can get your business funded in one day, have low minimum requirements, and offer flexible repayment terms that help you manage your cash flow.

Purchase Order Financing Frequently Asked Questions (FAQs)

The method PO financing companies use to pay suppliers varies by lender and includes a letter of credit, wire transfer, and check. Every lender and supplier prefers a payment method, and lenders are typically flexible, depending on the needs of the business and what it takes to get the deal done.

Can startups qualify for purchase order funding?

Purchase order funding is one of the few types of financing for which startups can qualify. However, keep in mind that if you don't have an established history with the supplier, getting access to capital will be more challenging. The exception to this made by some lenders is if you have extensive industry experience.

Is purchase order funding available in all industries?

There are few restrictions for businesses that can qualify for purchase order funding. These are general restrictions, such as nonprofit organizations or institutions in the gambling business. It's needed also means you're not paying interest on unused funds. *Frees Up Cash Flow for Reinvestment in the Business: If a company uses its capital to fund the manufacture and delivery of goods and extends terms up to 90 days to a customer, then its money is unavailable for up to six months. Freeing up this money can help businesses hire new employees and take on more customers.

Cons of Purchase Order Financing

  • Can Take a Long Time to Get Funding - Funding a purchase order typically takes two weeks. However, if your transaction requires multiple suppliers or international shipping methods, it can take up to a month to get the funding needed. This makes it essential to plan to get funding in time or work with a fast business loan provider like Graco Commercial Capital.
  • Isn't an Option If You Don't Have Credible Suppliers and Customers - While it is easy to qualify for funding compared to a traditional loan, the credibility of your customers and suppliers plays a significant role in approvals. Business owners typically have little control over this, which can lead to lost funding opportunities.
  • Is Less Flexible Than Other Financing Alternatives - Purchase order financing is meant for funding purchase orders. Businesses can't use it to support other business operations like payroll or rent, making it less flexible than some alternative forms of financing.
Your business can access a large amount of funding to fuel growth by financing purchase orders, but it will typically take at least two weeks to get funding. You also must depend on your suppliers' and customers' creditworthiness and track record to get approved. If your business needs less capital or urgent funding, consider applying for an alternative to purchase order financing.

Alternatives to Purchase Order Financing

When considering financing a purchase order, exploring alternatives is essential if you cannot qualify or need more flexible funding. You can factor in existing invoices if you have slow-paying customers, access funding based on the value of receivable with accounts receivable financing, or get a short-term loan or line of credit to fill a working capital need.

Invoice Factoring

Invoice factoring is an excellent alternative for businesses that have already delivered goods to their B2B or B2G customers and are waiting for them to pay an invoice. The best invoice factoring program at Graco Commercial Capital offers large maximum amounts, low rates, and a quick application process for funding.

Who Purchase Order Financing Is Best For

  • Have an Unusual Spike in Demand - If your business signed on a new distributor and demand for your product spikes, you'll need a financing solution. You don't want to risk losing a new distributor, and a traditional source of capital like a term loan may not be the best solution for a single large order.
  • Work with Reliable Suppliers - Purchase order financing companies send funds to your suppliers. Although every supplier makes errors from time to time, the more experienced your supplier is, the more likely you will get funding. This can free up capital for other investments in the business.
  • Are Unable to Keep Up with Orders as a Startup - New businesses are always on the brink of running out of cash. Taking advantage of PO financing can be a low-cost way to fuel that growth while meeting customer demand.