Purchase Order Finance
You want funding to fulfill a confirmed order or an individual sale, to a
creditworthy customer
Large orders, seasonal sales and business expansion can place real pressure
on your cash flow. Some suppliers want you to pay cash on delivery while
your customer wants to pay you net 30 to 60 days. At the same time, labor,
packaging and shipping costs all have to be met. While the opportunities
for future sales and growth may be great, these conditions constrict the
life blood of your business - your cash flow.
Our purchase order finance service (PO Finance) exists to make your deals
not only possible, but profitable. We can provide funds against confirmed
orders, or one-off sales, to individual customers. There are 3 different
types of facility, linked to a receivables funding facility, that you could
make use of dependent on your situation:
-
Making Direct Payments to your Supplier
We can advance up to 100% of the confirmed purchase cost to your supplier
by paying them directly and taking ownership of the goods. We collect the
invoice payment from your customer and pay you the balance between the
order value and the amount paid to your supplier, minus our fees and cost
of money used, once payment has been received.
-
Issuing a Letter of Credit
This is a commitment to pay the supplier on their fulfillment of certain
conditions backed by either a Bank or Bibby Financial Services. The
conditions are normally related to the provision of correct documentation.
These Letter of Credits are governed by the regulations of the
International Chamber of Commerce.
This is a commitment to pay the supplier by Bibby Financial Services from
the availability generated on the funding of the receivables when generated
relating to the purchase transaction.
If you have any questions
click here.
