What PO financing can - and CAN'T do

Here is a short article to tell you what can and can't be done with purchase order financing.

What you can do:
1. Use it to pay suppliers for finished product
2. Use it to grow your re-seller business
3. Handle large orders form credit worthy clients
4. Use it for product sales

What you can't do:
1. Use it to cover your own manufacturing expenses
2. Use it to cover payroll and other office expenses
3. Use the funds for anything other than paying your direct suppliers

Although purchase order financing is very flexible and works well with small companies, it can only help a businesses that fall within this very narrow definition: companies that buy goods from other companies and re-sell them without any modification to other commercial clients. In other words, it helps resellers and distributors.

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Looking for information on purchase order financing? Read the purchase order finance blog