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How Purchase Order Finance Works
The most
common use of modern purchase order finance is to finance the
manufacture of goods for an exceptionally large domestic retail order.
A purchase order finance company will provide a bank guarantee or letter
of credit to a manufacturer, oversee the actual production of goods, and
finally arrange for the shipment to be delivered to your customer.
Once the goods are delivered to the customer and invoiced, a factor will
often "take-out" the purchase order finance company.
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Purchase Order
Finance...Levels the Playing Field
For smaller
contract manufacturers producing products overseas, purchase order
finance can provide the capital necessary to compete with virtually any
competitor regardless of size. With purchase order finance in
place, even the smallest manufacturers can effectively compete for
orders from even the largest retailers. As with factoring, the
size of your company or its credit history is of little concern to the
purchase order finance company. NOTE: Purchase order
finance almost always involves an order for goods not services. An
order for services is generally contract finance and much more difficult
to finance.
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Find Out More
Purchase Order
Finance is of growing importance in today's domestic as well as
international marketplace. Lack of adequate financing for large
retail orders means that your business can not compete for large
contracts that can make your company a "player" in your industry.
To find out more
about the benefits of purchase order finance, we have published an
informative and complimentary small business owner's guide entitled
"Growing Your
Business Through Factoring....WHEN BANKS SAY NO!"
Request your FREE
Small Business Guide today
Its FREE
and available from our contact area.
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Copyright
DataMax Marketing Systems, Inc. 2009, 2010
All rights reserved.
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