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A/R Finance & Factoring Terms GLossary

What isPurchase Order Funding or PO Financing

Purchase Order Financing is a funding option for businesses that need cash to fill single or multiple customer orders. In many businesses, cash flow problems exist and there will be times when there are not enough monies available to cover the costs of having the available product to ship or monies to entice their vendor to release goods for resale.

You typically can have Invoice Factoring or Financing without PO Funding but you cannot have PO Funding without Invoice Factoring as most PO Funders want the protection and safety of being paid by an A/R Funder.

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