Many people equate trade financing with letters of credit. Although most trade financing involves letters of credit - not all of them do. Purchase order financing is rapidly becoming a tool of choice for distributors, wholesalers and importers.
As opposed to other forms of financing, po financing does not require that you company qualify for bank financing. Rather, it provides you with financing base don the strength of your purchase orders. So, if you have po's from strong credit worthy customers, more often than not, you will qualify for financing. This makes it the tool of choice for startup and fast growing companies.
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