Invoice Factoring and PO Financing

Can factoring and purchase order financing coexist? The answer is yes - under the right circumstances. It is very common for factoring and po financing to work together. Usually, the po financing covers all the funding needed to deliver on the order. Then the invoice is factored using part of the proceeds to close the po financing line, while the other part of the proceeds goes to the owner.

However, for both of this funding types to work with your business, the cost of goods plus the po financing fee must be less than (or equal to) the factoring advance.

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