Purchase Order Funding
Purchase order funding provides you with capital to pay your suppliers in-advance for the purchase of finished goods against signed customer orders from credit-worthy customers. Texas SBA, Inc., pays your supplier or issues a letter of credit (or other agreement) paying your customer up to 100% of the invoice value. What makes purchase order funding different from a business loan is that we do not look at your company's finances, but we look at the credit-history of your customer via public credit databases. Their credit-worthiness is sufficient for Texas SBA, Inc.,. to fund your purchase order. Qualifying for purchase order funding is quick - and easy. Apply Now!

Qualifications for Funding

  1. Must Be in Business for at Least One Year
  2. Monthly Minimum Sales Volume of US $50,000
  3. Must Be a Product Re-Seller or Distributor
    (ie. Finished Goods from 3rd Party)
  4. Must Have Commercial or Government Customers
  5. Transactions Must Have a Minimum Profit Margin of 20%
  6. Companies that Develop Products Must Use an Outsourced, 3rd Party Manufacturing Company
  7. Must Have Credit Worth Customer or a Letter of Credit
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Purchase Order Funding Steps

  1. Your Company is Awarded a Purchase Order from a Customer
  2. Texas SBA, Inc., Issues a Letter of Credit (or similar instrument) Favoring Your Suppliers
  3. Your Supplier Delivers the Goods
  4. The Order is Delivered and Accepted
  5. Your Company Issues an Invoice to Your Client
  6. Your Client Pays the Invoice
  7. The Transaction is Settled. Done!
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If your company sells a service or manufactures goods directly, rather than out sourcing, please use Texas SBA, Inc., factoring services.

What are the Benefits of Purchase Order Funding?

  • Pay Suppliers Early suppliers to be paid early, giving them the finances necessary to complete the deal on time and to the standards you expect.
  • Supplier Payment Discounts You may be able to negotiate early payment discounts with your suppliers
  • The confidence to fulfill your biggest orders
  • Funding for Transactions up to US $25 million

Purchase order financing can fund a large customer order! Purchase order funding gives you the ability to fulfill all your sales orders including large orders that normally would exceed your normal volume or scope. Hence, purchase order financing gives your company a competitive edge amongst customers and suppliers.

An Example of Purchase Order Funding

Your business has a signed purchase order from a credit-worthy customer, but you have no money to pay your suppliers upfront. Your bank is not willing to extend your credit line and therefore you have no money to pay your suppliers upfront! Your suppliers do not want to extend your credit line either. Texas SBA, Inc., can help because the purchase order from a credit-worthy customer is collateral that they will pay: Hence, Texas SBA, Inc., purchase order funding will pay your suppliers directly via letter of credit or other agreement. (You never take our a loan.) The supplier is paid and ships the goods to you. You fulfill your customer order and upon receipt, your customer makes payment. Transaction Complete! Apply Now for Purchase Order Funding!

Who Uses Purchase Order Funding

  • Producers
  • Distributors
  • Wholesaler
  • Re-Sellers of Manufactured Products
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Purchase order funding is simple, easy, and fast with funding available within a few business days. Once approved, your account can be used to finance current, multiple, and subsequent purchase orders. Texas SBA, Inc., purchase order funding allows you to accept purchase orders, regardless of your current capital availability, and to fulfill the transaction. Fulfill Your Customers' Orders, Today!