What is Purchase Order Financing?

Posted by on May 2, 2016 in | Comments Off on What is Purchase Order Financing?

How It Works & PO Funding Benefits 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. There will be times where there is simply not enough money available to cover the costs of doing business. As a result, there may be an order from a client that isn’t able to be fulfilled due to a lack of cash. A company may not be able to afford the supplies necessary to meet the client’s particular needs. Having to turn the order down would obviously mean loss of revenue and perhaps even a tarnished reputation. If word gets around that a company is turning away business because they can’t afford to complete jobs, customer trust is diminished. Groups that considered giving that company their business will likely think twice. Therefore, to avoid such scenarios, it is imperative that businesses find the money that they need. For some companies, purchase order financing is a great way to go. Purchase order financing involves one company paying the supplier of another company, for goods that have been ordered to fulfill a job for a customer. This is an advance and may not be for the entire amount of the supplies, but it will cover a large portion of it. In some cases, companies can qualify for 100% financing. The purchase order finance company will then collect the invoice from the end customer. The purchase order finance company makes their money by charging the company in need of funds various fees. These fees are taken out of the collected invoice. The remaining amount is returned to the company. A second option is for the purchase order financing company to open up a line of credit with the supplier. The line of credit will be opened in their name and backed by them. This allows businesses with poor credit or few assets to get the supplies that they need. Purchase order financing can be quite advantageous. It is pretty easy to qualify for and much easier than bank financing. Also, it does not require a company to have stellar credit. What is important is the creditworthiness of the client who has created the purchase order. If this person has a strong credit history, then purchase order financing is pretty easy. Many companies will require that the client be a commercial one or a government agency. There might also be other requirements. For example, the company may need to be profitable or earn so much in sales each month. The requirements will likely differ based on the financier. Unlike bank financing lenders, purchase order financing hinges mostly on the financial strength and creditworthiness of the company who has placed an order with a particular business, and not on the business itself. This makes it a viable option for new businesses and those with average credit. Want your working capital issues solved? Apply securely now, email us, chat live or call (888) 400-5931 ext 1. Money When Your Business Needs It...

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What is Purchase Order Financing?

Posted by on May 2, 2016 in | Comments Off on What is Purchase Order Financing?

How It Works & PO Funding Benefits 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. There will be times where there is simply not enough money available to cover the costs of doing business. As a result, there may be an order from a client that isn’t able to be fulfilled due to a lack of cash. A company may not be able to afford the supplies necessary to meet the client’s particular needs. Having to turn the order down would obviously mean loss of revenue and perhaps even a tarnished reputation. If word gets around that a company is turning away business because they can’t afford to complete jobs, customer trust is diminished. Groups that considered giving that company their business will likely think twice. Therefore, to avoid such scenarios, it is imperative that businesses find the money that they need. For some companies, purchase order financing is a great way to go. Purchase order financing involves one company paying the supplier of another company, for goods that have been ordered to fulfill a job for a customer. This is an advance and may not be for the entire amount of the supplies, but it will cover a large portion of it. In some cases, companies can qualify for 100% financing. The purchase order finance company will then collect the invoice from the end customer. The purchase order finance company makes their money by charging the company in need of funds various fees. These fees are taken out of the collected invoice. The remaining amount is returned to the company. A second option is for the purchase order financing company to open up a line of credit with the supplier. The line of credit will be opened in their name and backed by them. This allows businesses with poor credit or few assets to get the supplies that they need. Purchase order financing can be quite advantageous. It is pretty easy to qualify for and much easier than bank financing. Also, it does not require a company to have stellar credit. What is important is the creditworthiness of the client who has created the purchase order. If this person has a strong credit history, then purchase order financing is pretty easy. Many companies will require that the client be a commercial one or a government agency. There might also be other requirements. For example, the company may need to be profitable or earn so much in sales each month. The requirements will likely differ based on the financier. Unlike bank financing lenders, purchase order financing hinges mostly on the financial strength and creditworthiness of the company who has placed an order with a particular business, and not on the business itself. This makes it a viable option for new businesses and those with average credit. Money When Your Business Needs It...

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09/30/15 – Paragon Financial Sees Increase in Trade Financing in 3rd Quarter 2015

Posted by on September 30, 2015 in | Comments Off on 09/30/15 – Paragon Financial Sees Increase in Trade Financing in 3rd Quarter 2015

Ft Lauderdale, FL – Paragon Financial Group announces it has experienced a 23 percent increase in funding deals generated from trade financing and import purchase order financing during the 3rd quarters of 2015. Paragon believes in part this is occurring from China devaluing its currency, with cheaper Chinese imports creating strong opportunities for United States importers. Trade and financing go hand-in-hand with approximately 90% of the world’s international trade being financed according to the World Trade Organization. Chris Curtin, Paragon Financial’s National Sales Managers states, “Trade lines through banks are limited for many companies, but being transaction driven, Paragon Financial can fund over and above the usual bank constraints. Another reality is that many Chinese companies no longer want letters of credit, as China’s banking issues make it difficult for factories to monetize a LC as in the past. Our clients can utilize Paragon’s creditworthiness for their suppliers to release the goods and be paid from the Invoice Factoring proceeds via a Vendor Guarantee or our Cash Against Documents (CAD) Program.” About Paragon Financial Group For over two decades, US companies across all industries have selected Paragon Financial to meet their working capital needs. Non-Recourse Accounts Receivable Facilities are available up to $3,000,000 USD. From government contractors to distribution companies, from staffing firms to manufacturers; business owners have successfully grown their companies with Paragon Financial’s Non-Bank Invoice Factoring, Accounts Receivable Management, Credit Protection and Purchase Order Financing Programs. For fast funding now, please call 888-271-9347 ext 1 or visit our website...

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The New Reality of Import PO Financing in 2015

Posted by on September 23, 2015 in PO Financing | Comments Off on The New Reality of Import PO Financing in 2015

As China devalues its currency, cheaper Chinese imports are creating strong opportunities for United States importers. At the same time, with a growing middle class, China is now the third largest US export destination just behind Canada and Mexico. US exports to China have increased 198 percent over the past 10 years, higher than any other country, stated the US-China Business Council in its 2015 annual report. As China shifts towards a consumer-driven growth model, the world’s factory of today will become the world’s largest importer and the world’s market in the next decade. Trade and financing go hand-in-hand with approximately 90% of the world’s international trade being financed. Trade lines through banks are limited for many companies, but being transaction driven, Paragon Financial can fund over and above the usual bank constraints. We typically fund all landed costs of goods imported. In addition to Invoice Factoring with Credit Protection, PO Funding is also offered by Paragon Financial to either buy the goods for you via Cash against Documents (CAD) or a Letter of Credit. Another reality is that many Chinese companies no longer want letters of credit, as China’s banking issues make it difficult for factories to monetize them as in the past. You can also utilize Paragon’s credit worthiness for your supplier to release the goods and be paid from the Invoice Factoring proceeds via a Vendor Guarantee. A Vendor Guarantee is the less costly for you because of the reduced risk and paperwork. Typically Paragon will contract with your supplier to pass enough of the factoring proceeds on to them to cover the supplier’s invoice to you. Cash against Doc’s can be FOB China or FOB US. Of course, FOB China is higher risk than FOB US and the money is out longer. There is also the real risk of your supplier not meeting quality, quantity and timeliness standards even with proper documentation presentation. In addition, unlike Invoice Factoring, PO Financing has the risk of product rejection by the account debtor (your client). It is also based on what we pay your supplier, not the invoice amount. Any deposit you make to the supplier will reduce your overall cost of funds … Note: Your goal should be to get your supplier(s) comfortable enough with you to take a Vendor Guarantee as your costs will then be reduced significantly. Ready for fast, secure funding now? Paragon has been providing creative solutions for import financing, PO funding, Cash Against Docs, Letters of Credit and Vendor Guarantees for over two decades. To learn more, please contact our National Sales Manager, Chris Curtin via email or toll-free at 888-400-5931 ext 1. Money When Your Business Needs It...

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01/31/2015 – Paragon Financial Group Sees Large Increase in Food & Beverage Import Industry Financing

Posted by on January 31, 2015 in | 0 comments

FOR IMMEDIATE RELEASE Ft. Lauderdale, January 31, 2015 – Paragon Financial Group has seen a major increase in the working capital needs of their food & beverage importer clients throughout the last quarter of 2014 and into 2015. Paragon’s import clients closely followed the biggest revenue gains in US food & beverage imports (US Census Bureau) between 2013 and 2014 including wine, beer and spirits, meat products, fish, nuts, coffee and olive oil. “We have seen an increased demand for funding with many of our clients importing food from regions such as Spain, Chile, Peru, Ireland and Italy. Paragon is well positioned to fund these food & beverage import businesses. We quickly get import businesses the critical working capital they need”, said Jon Anselma, Paragon Financial’s Managing Partner. Paragon Financial’s premium meat import clients have seen the largest boost in financing needs along the entire supply chain. Last year, the United States imported around $4.8 billion, worth of premium grass-fed, hormone-free beef according to the New York Times. Anselma said, “This month the US lifted a ban on beef imports from Ireland after more than 15 years. Ireland’s beef exports to the US may total 119 million dollars this year. Readily available working capital is required for importers to take advantage of these opportunities. We already see an impact on funding requests.” Wine, beer and spirit importers have also seen a large demand for working capital. Much of the demand is from an increase in sparkling wine imports which is up 11.54 percent with overall wine imports up 2.53 percent over the same 10-month period last year, according to WorldCity analysis of the latest data. About Paragon Financial Group For over 20 years, US companies across all industries have selected Paragon Financial to meet their working capital needs. From government contractors to distribution companies, from staffing firms to manufacturers, business owners have successfully grown their companies with Paragon Financial’s invoice factoring, AR management, credit protection and purchase order financing programs. To get funded now, please call 888-271-9347 or...

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