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Purchase Order Financing
Letters of Credit
A Great Solution for Importers & Exporters
We Supply Letters of Credit
HRH Funding Solutions Offers Purchase Order Financing.
Like our accounts receivable funding services, our Purchase Order Financing Program helps customers who have been awarded a purchase order but do not have the capital necessary to fulfill it.
Purchase order financing, like receivables financing, is very beneficial to companies that need funds to manufacture or assemble products being marketing to creditworthy customers..
Like commercial factoring, the terms of the purchase order financing agreement are extremely specific, requiring the borrower to use loan funds for the purchase of certain materials needed to deliver goods to the end-customer. An example of these specifics would be a clothing manufacturer using purchase order financing to buy finished goods to be sold to a reputable department store chain.
Reasons for Using Purchase Order Financing
Provides working capital for persons who have insufficient funds to complete a transaction
- Lends knowledge and security to international export and import transactions
- Provides working capital to businesses that aren't able to obtain bank loans
- Helps to quickly expedite orders and sales
- Allows clients to do more business and expand growth
- Purchase order Funding can be used by Importers, Manufacturers, Exporters, or Distributors for:
- Issuing Letters of Credit
- Exporters, or Distributors for:
- Issuing Letters of Credit
- Payment to third party suppliers for finished goods
- Raw materials
- Direct labor
- Shipping, packaging, inspections, etc.
- Allows your business to maintain anonymity between the end buyer and manufacturer by using the purchase order fund provider as the liaison
- Client gains smoother transactions through expert operational support
- Allows your business to maintain anonymity between the end buyer and manufacturer by using the purchase order fund provider as the liaison
Millions Available
Purchase Order Financing
World Trade
Import - Export
856-690-1695
What Does P.O. Financing Cost?
On average PO financing rates are between 1.5 - 3.5 % per 30 day period.
If importing these items and info are of great important such as:
When is letter of credit to be issued (normally it’s when leaving port and after inspection).
The Benefits of Purchase Order Funding.
- Allows companies to grow without creating new debt.
- Helps ensure timely deliveries to customers
- Increase market share
Bank Letter of Credit: a commitment to be paid back by a bank institution primarily based upon the supplier providing the correct documentation.
Bank / BFS Standby Letter of Credit: Guarantees payment from the client to the supplier.
Supplier Guarantee: a commitment by HRH Funding Solutions & its Associates to pay cash generated from the receivable direct to the supplier.
F.A.Q.
What is purchase order funding?
What types of companies should use purchase order funding?
- Distributors
- Wholesalers
- Manufacturers
- Commodities.
Can a manufacturer use purchase order funding.
Yes, in most circumstances.
How important are the financial's of my company in obtaining purchase order financing?
The importance of the financials of the company increases as the risk of satisfying the purchase order increases.
My bank already has a lien on all my receivables. Can purchase order funding be gotten in this situation?
Yes.
Most banks have no problem giving up the lien on your receivables. They realize that this would allow more money to flow through their bank.
It will be necessary to obtain UCC-3 a subordination agreement with your bank on that portion of the receivables generated as a result of the purchase order funding transaction.
What transaction size will we consider for purchase order funding?
The transaction size is normally about $50,000 to $20,000,000.
How much will you advance on the purchase order?
100% of Purchase order.
The advance would cover the amount required to manufacture, shipping, freight, and inspections.
CALL
856-690-1695
Fax: 609-939-0573
HRH Funding Solutions
1271 N. Orchard Rd.
Vineland NJ 08360
HRH Funding Solutions
Helping Business Growth Since 2002
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Additional Comments.
Benefits of purchase order funding
- Obtaining Sufficient Capital
- International Expertise
- Reduction of Foreign Risk
- Preservation of Equity
- Speed of Funding
- Enhance Profits
- Protection of our Client’s Identity
Obtaining Sufficient Capital
If you have solid sales orders but lack the working capital to complete the transaction or continue to grow, we are your ideal solution.
International Expertise
If your company hasn’t yet developed the expertise and experience to structure import or export transactions, we have the knowledge base you need.
Reduction of Foreign Risk
Our clients companies benefit from transferring the payment by the foreign buyers.
Preservation of Equity
Fast growing companies often have limited options for securing working capital. We provide the capital you need and take no equity or ownership interest in your company.
Speed of Funding
We always give our clients a quick response so they can get or keep their sales. We conduct a rapid due diligence and review the details of the transaction.
Most of our Puchase Order clients are either:
- Fast growing companies whose previous earnings and sales histories will not justify the increased borrowing necessary to acquire needed raw materials and supplies,
- Clients that have been denied by their asset based lender or bank in financing export receivables.
- Companies with seasonal or uneven sales patterns.
- Principles that cannot obtain traditional financing.
- Clients being forced to purchase credit insurance on all of their accounts when all they need is one account funded and insured.
Do these circumstances apply to you?
Any U.S. based business can be eligible for an international receivables factoring service if:
They sell to credit worthy international businesses or customers.
Companies should have a minimum need of $100,000 in receivable finance, we will consider less depending on the circumstances.
At HRH Funding, we are helping U.S. based companies maintain growth in sales by providing flexible import-export finance: Purchase Order Financing. Our program allows importers-exporters and manufacturers to enhance their sales efforts and successfully compete in the international market place
HRH Funding Solutions Credit can provide you with International Trade Financial Services and work together with your bank or lending institution in achieving your export sales. We can provide purchase order financing, letters of credit and credit insurance. Call us today and ask for an international factoring proposal with no obligation or apply online and an account representative will call you the same day or within 24 hrs.
Purchase Order Financing
International Financing
World Wide Trade
Import-Export
Unlimited Working Capital
The Process
- The customer submits a purchase order to client with all documents.
- The client submits the customer purchase order to HRH for approval with all costs associated with transactions.
- HRH then will make direct payments to the clients vendors so that the merchandise for the customer PO can be produced.
- The clients vendors deliver final product directly to the end customer or to a third party warehouse until shipped to end customer.
- Options: If you need Invoice Factoring. This is needed when you offer terms to your customers.
- The seller then invoices the shipment and sends invoice and corresponding copy of customer LC to the factor.
- The factor funds the invoice at his discount paying HRH our loan.
- The factor collects from the end customer and pays client his residual left from advance.
Purchase order funding is a financing opportunity that allows you to accept purchase orders, regardless of your current capital availability. It is tool that is great for companies that have exhausted their available funds or bank options.
PO financing enables you to finance up to 100% of your supplier costs, allowing you to deliver more and bigger orders. Furthermore, PO financing has not arbitrary boundaries like bank financing and is directly tied to your sales. This means that all you need to do to get additional financing is to obtain orders from solid commercial or government customers.
We are Waiting
for Your
Purchase Order
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