Information on Purchase Order Funding

selling to the government, financing gov transactions

Pricing - No Fee to locate Funding

Accounts Receivable Invoice Factoring

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Using Purchase Order Funding to Finance Your Deals

What is Purchase Order Funding? ( It should be noted that most PO Financing Companies will only provide funding if the amount is in high 6 figures.)

Example: Step 1. You have a contract with the US Government to deliver 5,000 laptops to

the Department of Defense at a price of $250 USD each. However, you do not have the cash flow to pay the manufacture. (The manufacture must be a US based company and must be paid "before" the laptops are shipped) Your price is $200 USD for each Laptop.

Step 2. Purchase Order Funding provides a Line of Credit for you to pay the manufacture

for the laptops. ($1Million) The laptops are shipped to the US Government. You Invoice the US Government, who owes you $1.2 Million. Because you owe the Purchase Order Lender $1M - you must factor this amount.

Step 3. The US Gov takes 30 to pay! So you Factor the $1.2 million dollar

Invoice and receive up to 90% of the Invoice amount within a very short period of time. Once the Invoice is paid, by the US Government; you receive the balance of the Invoice amount minus the "tax deductible" fees.

(Note: Your profit is $200,000. However, the chances of another Government Vendor coming in with a lower bid are extremely high, You can find Government Opportunities, such as the example above at http://fbo.gov )

What's Next?

Complete and Submit the Short Pre-Application Form to get started.
Take the time to complete the necessary paper work that will be faxed to you
Respond to all communications from the Purchase Order Funding Company and the Accounts Receivable Company in a timely manner.

Factoring & PO Funding blog

Purchase Order Funding