2 min read
Definition
Purchase-order finance advances funds against a confirmed customer order, so a business can pay its suppliers to fulfil that order before the customer pays. It is designed for the situation where you have won the work but lack the cash to deliver it.
In plain terms
You receive a large order, the financier pays your supplier to produce or source the goods, you deliver, and the finance is repaid when the customer settles. It lets you say yes to orders bigger than your current cash allows.
Why it matters
PO finance is a targeted tool for funding a specific large order. See how to fund a large new order and stock finance.
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