Pay when Paid and Purchase Order Financing

I recently wrote about the subject of pay when paid as it relates to invoice factoring. "Pay when paid" is something that crops up in the world of purchase order funding fairly regularly as well. The scenario is fairly similar to the one in factoring though.

Basically a reseller gets a large purchase order and tries to use po financing (learn bout po financing benefits) to fund the order. However, the PO states that the reseller will only get paid once (and if!) their client is paid themselves. There are many things that can go wrong with these, some of which were outlined in the prior post.

Ultimately, we (and most of my competitors) will not finance those transactions because of the risk of non payment. Pay when paid can be a deal killer - at least for us.

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Learn about business loan financing in South Dakota. Or get information on factoring South Dakota and invoice factoring South Dakota.