Purchase Order (PO) Financing, is a type of commercial financing that allows a business to receive funding for a pre-ordered project using the purchase order from the client as collateral. Many times, small or growing businesses will not have the funds on hand that they need in order to purchase all of the materials necessary for a big job, nor can they obtain credit from a traditional financial institution based on their credit alone with only a purchase order in hand. The difference between PO financing and traditional bank financing is that PO financing bases its credit decision on the financial strength of your customer; a bank would focus on your finances alone regardless of any purchase order promising future income.

Purchase order financing can remove barriers to growth that traditional financing might cause. It also has a generally faster underwriting time compared to traditional commercial loans. With PO financing, our lenders will make the payments to your suppliers, we receive payment from your customer when it is due, and your profit is paid directly to you after payment is received.

Purchase order financing enables a company to:

• Process large orders and expand production without worrying about depleting cash reserves or drawing down on a bank line of credit
• Obtain financing for presold goods and inventory to promote business growth and opportunity,
• Maintain its reputation as a business worth continuing to work with, and
• Continue growing without needing to obtain new financing.

ESU-Global’s purchase order financing programs are used to finance the purchase or manufacture of specific goods that are pre-sold by our clients to their creditworthy customers.