Purchase Order Funding: Bridge the Gap Between Winning the Order and Getting Paid
A signed contract or a big wholesale order is great news, until labor, materials and subcontractors all need to be paid before the customer invoice clears.
Apply directly with us. More reasons to get funded
What is purchase order funding?
Purchase order funding covers the cost of fulfilling a contract, wholesale order or purchase order, such as labor, materials or subcontractor payments, while you wait for a customer to pay a net-30, net-60 or net-90 invoice.
The revenue is already won. The problem is timing. Our Direct Fund program provides general-purpose funding sized to your monthly revenue, repaid through fixed daily or weekly payments. It is not a specialized product that pays your supplier directly or pauses repayment until your customer pays.
- Take on bigger orders
- Pay suppliers and subcontractors on time
- Cover labor before the invoice clears
- Keep your customer happy and on schedule
Where purchase order funding helps
Wholesale orders
Buy the goods to fill a large wholesale order before you are paid.
Government and commercial contracts
Cover startup costs on a new contract.
Subcontractor payments
Pay subcontractors on time while waiting on the client.
Materials and supplies
Buy materials in advance of a job.
Payroll for a ramp-up
Hire and pay extra staff to deliver a larger contract.
Seasonal orders
Produce and ship ahead of a seasonal spike.
Is this order a fit?
Nothing is submitted here. It is just a fast way to see whether this fits your situation.
Weigh your options
- Our funding is general-purpose and repaid daily or weekly, even while you wait on your customer. Plan for that in your cash flow.
- Make sure the margin on the order comfortably covers the cost of funding.
- See how the numbers work on Transparent Terms.
Is this order a fit?
Tick what is true about the order.
Send your order details
Share the contract or PO and your recent bank statements. A soft credit pull only.
Review your offer
Underwriting usually takes 1 to 5 hours on a complete file.
Fulfill the order
Funding usually arrives 24 to 48 hours from application.
Your questions, answered
What is purchase order funding?
It is funding used to cover the cost of fulfilling a contract or purchase order while you wait for the customer's invoice to be paid.
Does the funding pay my supplier directly?
No. Our Direct Fund program provides general-purpose funding to your business, repaid through fixed daily or weekly payments. It does not pay suppliers directly or pause repayment until your customer pays.
Do I need good credit?
We use a soft credit pull only, so applying does not add a hard inquiry, and we approve down to a 500 credit score. Approval looks mainly at your revenue and cash flow.
How fast can I get funded?
Underwriting usually takes 1 to 5 hours on a complete file, and funding usually arrives 24 to 48 hours from application. Funding can arrive in as little as 24 hours.
How does repayment work?
Our merchant cash advance has a fixed daily or weekly payment. Terms are up to 10 months, and sometimes up to 15 months. Your funding specialist explains the full cost and payment schedule in writing before you decide.
What does it cost?
Cost is expressed as a factor rate and fees rather than an interest rate. Direct Fund factor rates range from 1.25 to 1.49 for prime files and 1.309 to 1.499 for higher-risk files, with standard fees of 5% to 10%. Because the cost is set at funding, you know the full repayment amount up front. See Transparent Terms for worked examples.
Is this a loan?
No. Our funding is a merchant cash advance, which is not a loan. It is an advance based on your business's revenue.
What do I need to qualify?
At least 1 year in business. Our Direct Fund program looks for about $50,000 per month in revenue, and our Marketplace program looks for about $5,000 per month. Funding amounts range from $10,000 to $5,000,000.
Related guides and pages
Ready to get started?
Apply directly with us, and a funding specialist will guide you from application to funding.
Funding amounts, terms and eligibility depend on your business and are subject to approval. Funding is provided as a merchant cash advance, which is not a loan, through our Direct Fund and Marketplace programs. Images are illustrative.
