Purchase Order Funding

In Purchase Order Funding the initial payment is made directly to your materials supplier and/or vendor.  This alleviates your payable obligation and allows the product to be shipped to you without delay.  Please note, as part of Purchase Order Funding, you will be factoring your receivables.

Purchase Order Funding will likely take the following form:

1. We will discount the purchase order sufficient to pay the Supplier/Vendor.
2. Initial payments will be made directly to the Supplier/Vendor from Tortugas Finance Corp.
3. Upon sale to the customer, your invoice will be factored at a discount rate of usually 75-85% of face value, with net proceeds to you.
4. Upon final payment of the invoice, the discounted amount will be remitted to you, less the Purchase Order and Factoring fees.

Best Candidates for Purchase Order Funding:

• Wholesalers and Distributors.
• Importers that purchase good for resale.
• Clients with high profit margin; at least 30%..
• Clients with non-cancelable purchase orders.
• Clients with strong credit-worthy customers & suppliers.
• Businesses that experience seasonal surges.
• Business that occasionally have unusually large purchase orders.

Business Not Appropriate for Purchase Order Funding:

• Construction Companies
• Start-Up Manufacturers
• Service Oriented Companies

 

Questions?  E-mail us at info@tortugasfinance.com