Letter of Credit

Do you have a supplier that insists on getting by by letter of credit or worse.... cash?

Then you should consider purchase order financing. It allows you to finance large orders. Simply state, po financing works as follows:

1. Your client places and order with you by issuing a purchase order
2. The purchase order financing company agrees to pay your supplier on your behalf using a letter of credit, supplier guarantee or cash
3. The product is delivered and accepted by your client
4. The purchase order funding company pays the supplier and you issue an invoice
5. The transaction is settled once the client pays the invoice

If your bank won't give you a letter of credit, consider po funding.

Looking for informaiton on invoice factoring? Try my other blog.