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Purchase Order Financing

Traditional PO Funding

GMFC Client, Holds Exiting In-House Legitimate, and Confirmable Firm Release Purchase Orders from your Customer(s), And You need either Raw Materials or Finished Goods to construct, complete and ship to your Customer, against such In-House Customer(s) Purchase Order(s). However – You are short the available working capital to accomplish. WE CAN HELP! Via Our Standard Due Diligence Process, GMFC will verify all necessary paperwork, and in a matter of a few days, arrange a funding program to accomplish your acquisition of the needed Raw Materials or Finished Goods. GMFC offers PO Funding at competitive rates and works in most industries.  See our list of Prohibited Industries.

purchase-order-financing

How PO FUNDING Works:

GMFC would Establish and Qualify Your Program Relationship with GMFC, (Creating Your “PO Funding Available Balance Agreement”) – Fast and Easy!

PO Funding Contract & Settlement Two Step Process:

Step 1  GMFC Funds the Cost of your Purchase Order Made to Your Vendor, Based on Your Established “PO Available Funding Balance Agreement”, the basis for GMFC to Pay Your Vendor directly, on your behalf, following Your Vendors’ satisfactory delivery of your items, per Your PO to Your Vendor, at your designated receiving location.

Step 2  The Vendor Advance Payment, based on Your PO Funding Contract with GMFC, from Step 1, will result in your Settlement Payment to GMFC, per Your PO Funding Contract with GMFC, Closing the related PO Funding Contact, Once You have shipped the related goods to and Invoiced Your Customer.

Step 2a (Optional)  PO Funding can be used in combination with A/R Factoring, which further leverages your cash position.

We can help! Via, PO Funding, GMFC would Structure the following transaction, based on Your PO Available Funding Balance per Your established GMFC Funding Agreement.

Example

  • GMFC Due Diligence Insures the Funding Transaction Complies with Your PO Funding Agreement
  • GMFC will pay Your Vendor Directly, at the appropriate time, the agreed $50,000.00, via ACH or wire transfer, with any Foreign payments requiring International Letters of Credit (LC).
  • Once the payment or LC has been received, OR, on standard terms per Your PO with Your Vendor for later GMFC payment directly to Your Vendor, your Vendor prepares Your PO to Your Vendor for shipment or manufactures your product for later shipment.
  • Your Vendor may ship direct to You, or Drop ship to Your Customer, AND
  • Your product is delivered to Your Customer, who inspects and Accepts them, OR
  • Your Vendor ships to You directly to allow you to perform value added steps and then You Ship to Your Customer
  • In either Payment / Shipping Method, You Would:
  • Prepare and Send Your Customer, Your Sales Invoice for $100,000.00, creating Your Trade Accounts Receivable with Your Customer
  • At this Point, this PO Funding Transaction could proceed in One of Two Ways;

One: You would Close the PO Funding Contract with GMFC, Paying GMFC, per the PO Funding Contract ($50,000.00 AND All GMFC Earned Discounts, per the PO Funding Contract) OR

Two: You could Create an Accounts Receivable Factor Agreement, covering the $100,000.00 Trade Receivable Customer Invoice and Apply the A/R Factoring Advance to pay GMFC the PO Funding Contract, using the A/R Factoring Advance to PAY the $50,000.00 AND All GMFC Earned Discounts, per the PO Funding Contract, via, (applying say an 85% Gross Advance of  $85,000, less the GMFC PO Funding Contract $50,000.00 AND All GMFC Earned Discounts, per the PO Funding Contract, netting say an example remainder of $30,000 to be Deposited to Your bank Account, as the Advance per the $100,000 A/R Funding Contract ( $85,000 A/R ADVANCE, less   $55,000 (PO Funding Payment, per PO Funding Contract – $50,000 AND $5,000 GMFC Earned Discount).

Example: The Now A/R Factoring transaction would proceed as an Established A/R Invoice factoring agreementAlternatively, if A/R invoice factoring is not an option, the transaction can settle once your customer pays The Trade Account Receivable directly to You, extending the Discount Period, per the PO Funding Contract.