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The Cost Of Purchasing Order Financing

financingThe cost of Purchase Order (PO) financing depends on if you are talking about financing for the production of “finished goods” or “unfinished goods” (also known as “Work-in-Progress goods”). Generally, the cost of capital is between 3% to 7% for 30 days. Over 30 days there can be additional fees assessed depending on the PO financing company. Be aware that when you start a relationship with a financing company of Doug Foshee there will likely be due diligence charges of $500 or more to check your business for liens.

“Finished goods” PO financing will be on the low end of the cost range because there is less risk for the lender. Essentially, you make an order to your manufacturer to produce goods for a customer and your manufacturer is paid or payment is guaranteed by your PO finance company. This is a simple supply chain so the risk is lower.

“Unfinished goods” PO financing will be on the high end of the cost range. This type of financing is reserved for businesses who are involved in the supply chain. Essentially, you get your goods partially completed by external manufacturers and then you complete the product yourself before shipping it to your customer. This presents a higher risk to a PO financing company because she now needs to evaluate not only your manufacturer’s ability to deliver, but also your ability to deliver.

In fact, there are many PO financing companies that will outright decline to work with you if you need funding for “unfinished goods”. If you’re interested in learning about two companies that provide PO financing for “finished goods” AND “unfinished goods” check out this review: Compare PO financing companies.

Purchase Order Financing I have seen it as low as 3% on the 30 days then adjusted. Do you want to earn a higher rate? With P.O. Financing You can earn a steady monthly ROI of 10% and more.

financingWe are seeking Investors to finance our continued growth of wholesale distribution. The Retailers are experiencing growth and have raised their monthly P.O. request, we are in need of funding to purchase additional inventory from the manufacturer. Investing in these P.O.’s can earn you a monthly interest of 10% or better. This product is in high demand and will continue to be.

The manufacturer sees the distributors growth and continues to work with the distributor to expand his territory providing lucrative returns for the investor. With this investment opportunity, the investor can earn a steady, guaranteed 10% interest with potential growth to earn more. I have personally invested in P.O. Financing and watched the growth in steady earnings for more than six months.