Recently, a prospect asked me if we could finance a 150 day transaction. The answer is yes, maybe. Like most types of financing, the costs of purchase order financing increase with time. That means that a transaction that takes 150 days will be more expense than one that takes 60 days. Obvious right?
As a rule of thumb, purchase order financing works best for transactions that have at least 30% margins and a turnaround time of 90 days or less. But, it's fairly flexible an can be used in other circumstances.
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Learn more at the purchase order financing blog. Looking for factoring Missouri? Consider doing business with us.
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