24 Jun Purchase Order Finance: Top 5 Most Popular Business Loan Criteria (4 of 5)

Minimum Criteria: Purchase Order Finance (Part 4 of 5)

This is part 4 of 5: (view previous)

If you’re a business that receives purchase orders for finished goods from customers, then chances are you’ve received an order that was too big to fill or would put too much strain on the cash flow if you took it on.

The good news is that you can use a product called Purchase Order Finance. Financiers will provide you funding to pay overseas or domestic suppliers based on the strength of your customer order/s. Once you’re approved for a facility, you present your purchase order/s to the finance company and they make payments directly to your suppliers on your behalf.

You might like to browse all articles about Purchase Order Financing

Purchase order financiers don’t usually require any assets to approve a facility and are more interested in the strength of your transactions and the profitability of your orders rather than past financial history of your business.

Purchase Order Finance Minimum Criteria
Years in Business Required: 1 +.
Minimum Revenue: $100000+
Personal credit score 600+
Company credit: No unpaid defaults.
Tax debt: No.
Profitability required? Only in your order.
Bankruptcy allowed? No.
Credit Card volume a factor? No.
Accounts Receivable a factor? Yes.
Second position allowed? Yes in almost all cases.
Proof of pre-sold goods: Yes.
Finished goods: Yes.

Next loan type coming up is Unsecured Business Loans.

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