| PURCHASE ORDER FINANCING At Capital Associates, we'll advance you money on confirmed purchase orders. With cash available, you have the working capital to fund the purchase of materials and cover production costs on new and existing orders. |
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Our Purchase Order Financing Program can help your business grow in sales and profitability, even after you have exhausted all of your own working capital. Succeeding in business is tough enough without the threat of losing new or expanded orders because you lack the additional capital to fund the purchase of materials and production cost. Here are a few additional benefits:
- You will be able to take advantage of vendor discounts for early payment on material orders.
- You will have the financial capacity for expanded growth. - Your worries will be reduced when seasonal needs out pace cash flow and inventory. - You will be prepared to expand production when new product sales exceed your existing financial capabilities. - You won't have to consider seeking venture capital or equity financing to fund your working capital needs.
What is the Difference Between Purchase Order and Inventory Financing? Purchase order financing is really only a form or variation of inventory financing. Having a purchase order from a buyer is the only difference between the two. In both cases you're advanced funds to cover the cost of funding materials and production costs. Is Being a Start Up CompanyDetrimental to us Using this Type of Financing? Not as long as the management has approximately five years of industry experience and has completed at least two or more transaction cycles with your product. What Size Does a Company Need to be to Receive Purchase Order Financing? A company with annual sales of approximately $300,000 and an equity position in the transaction of 20% or more. We will consider companies whose monthly volume is less if it appears that they are growing and their volume will increase as a result of purchase order financing. How Long Does it Take to Get Started in a Purchase Order Financing Relationship with Capital Associates? That depends on how quickly you can supply us with the information we need to process an application and prepare the required documents. Typically it takes a week or two, unless we need to obtain a subordination or release from someone you currently have a financial relationship with. Is This Type of Financing Expensive? It costs more than a term loan or line of credit from your bank, but when you consider what you will be able to do with instant access to cash, it often ends up inexpensive. We've had clients whose early payment discounts were greater than our costs. They ended up actually making money on their relationship with Capital Associates. Capital Associates guiding values: Teamwork, Creativity, Integrity, Consistency, Efficiency and Growth.
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Capital Associates Inc.
2594 East Barnett Rd, Suite C - Medford, OR 97504 phone: 800-727-3377 fax:541-773-3407 Info@CapitalAssociates.com |
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