IMM Purchase Order Finance: Advances up 80% of the Sales Value of your Purchase Orders with fees as low as 1%.

Have you ever received a Purchase Order from a customer that you wanted to fill, but could not because the cash outlay was too great to complete the order so you had to pass on the sale?

Purchase Order Finance Application

This happens many times to many companies. No matter how big or small your company is, if you receive a Purchase Order that is huge and you cannot fill it, this can hurt you with future order with that customer as well.

 

Purchase Order Finance is a Program where typically an intermediary will finance a “buy-sell” of a product where the company financing the transaction has experience and can demonstrate similar past sales, the buyer of the product is creditworthy, the seller is reputable and the intermediary is not making a “value added” contribution to the product being sold. This Program will not provide advances to manufacture a product.

Purchase Order Finance is designed to assist in bridging the gap between the time your customer pays you and the time you have to pay your supplier. PO Funding can help your company compete on any scale. It does not matter if you are a large multinational company or a Small Business owner, fill out the form below and get your Purchase Order Quote today.

Hi there, my name is Pete and welcome the IMMFinancial.com “Application Walkthrough” for Purchase Order FinancingPO Finance is NOT a loan, it is a Line of Credit based on Orders that your company is contracted to fill.

IMMFinancial.com will generally set the advance rate at 70% to 80% against the value of your Orders.

And when your customers pay their invoices that they owe to you, this will pay back the advance you received.

This means there is no fixed monthly payment you need to be concerned with.

The amount available to you will grow with your sales so as your Orders increase, so will your Line of Credit.

At the end of the day, the money that is being used from this Line of Credit is money you were going to receive when your customers paid their invoices.

It is also important to know that many times, people inquire about PO Finance when in fact, we can use their existing Accounts Receivable as an advance base.

When providing advance on the AR, many times this will give a sufficient advance so that the company can fund the Purchase Orders without getting into a “bone fide Purchase Order Facility”.

Before we go any further, I need to clarify a Major Misunderstanding when it comes to PO Finance.

Purchase Order Finance is NOT able to provide funds directly to you to pay for supplies or wages.

With PO Finance, any funds paid out must go to a third party, generally a manufacturer, who make the goods which are pre-sold and these goods are drop-shipped directly to the end buyer.

This means that the goods cannot be shipped anywhere else but the end buyer and there can be no additional “processing” or “added value” done to the goods once they leave the supplier until accepted by the end customer.

I am going to show the mechanics of PO Finance and how the pieces fit together.Let me be completely clear.  PO Finance will not advance you money based on a Purchase Order from a customer where you can take that money to pay for the goods to build or manufacture the goods.

This Financing Product is for Intermediaries or Brokers in a transaction where the Intermediary has sold goods sold to a company which are being manufactured by another company and all transactions must be at “Arms Length”.

This Financing Product is for Intermediaries or Brokers in a transaction where the Intermediary has sold goods sold to a company which are being manufactured by another company and all transactions must be at “Arms Length”.

“Arms Length” in this case is a term that is used to mean that none of the parties are related.   This requires that there can be no subsidiary or sister companies involved in the transaction.

All that being said, we do happen to have an exception to this rule.

This is for USA Companies only who have very good credit, have been in business for more that 2 year and have sales in excess of $1 million per year.

In these cases, and these cases only, we may be able to pay your suppliers directly for supplies that are delivered to your manufacturing facility.

But we will not be able to advance you cash on the Orders to pay for wages or anything of the sort.

Now that we have covered that, let’s move on…

So, how does the PO Finance process typically work?

The PO Process1. End Customer sends PO to Distributor2. Distributor sends PO to IMM.3. IMM verifies PO with End Customer.4. IMM verifies terms with Supplier and makes payment arrangements.5. Supplier delivers goods to End Customer and End Customer confirms acceptance.6. IMM releases payment to Supplier.7. End Customer pays IMM.8. IMM releases residual funds to Client.The PO Process

 

 

Now that we have covered that, when you are on the Purchase Order Finance page, select the “Click Here to Start” button.

When you do that, there will be pop-up requesting your Name, Email address and Telephone Number. Just fill that in and click “Get Started Here”.

Now, you will receive an email at the address you provided so you will need to go to your email inbox to retrieve the email.

You will need to open the email so you will be able to confirm your request and go to the application page.

In the Welcome message you will find a link that you will need to click which will take you to the IMMFinancial.com Purchase Order Finance Application page.

The Application page will open and here you will find our site is “Certified Secure”. There will be 6 Sections to the Online Application.

 

 

If you prefer, you can scroll to the bottom of the page and download the application in MS Word format.

 

On the MS Word version, it will have all the required fields and instructions letting you know where to email the application and supporting documents.

 

Once you submit, a message will be populated in the Application area confirming the Application has been submitted.

 

Now, what happens next is your information will be received in our Contact Centre and a Business Finance Professional will review the information that you submitted to ensure that we have everything needed to do an initial review.

 

Should there be anything that is missing, we will be in contact with you to collect the balance of the information that is needed for the Underwriting Team.

 

 

We truly look forward to working with you to give you the Business Financing to Suit Your Needs.

Purchase Order Finance Questions and Answers

  1. What does IMM Financial, an International Purchase Order Finance Company, offer?PO Finance Companies | Purchase Order Finance Canada | Purchase Order Finance USA
  2. Why would I want to use Purchase Order Financing?
  3. What transactions qualify to PO Funding?
  4. What kinds of clients use Purchase Order Factoring?
  5. Is the application process for PO Finance as cumbersome as getting a Commercial Bank Loan?
  6. What Benefits will I receive if I were to use the services of a PO Finance Company?
  7. I have customers in several different countries; will your PO Funding Program work with these Purchase Orders as well?
  8. How long does it take to get set up with Purchase Order Financing?
  9. How exactly does Financing Purchase Orders work?
  10. What would the principle reason be that I should want deal with PO Factoring Companies?Purchase Order Finance | Purchase Order Funding | PO Finance | PO Funding | Purchase Order Loan

    1. What does IMM Financial, an International Purchase Order Finance Company, offer?

    IMM Financial offers numerous financial products including International Letters of Credit. From Documentary Credit, PO Finance, Export Finance, Accounts Receivable Factoring, Accounts Receivable Management, Debtor-In-Possession Financing (DIP Financing), Government Receivables Financing, Merchant Card Advances, Equipment Leasing, and more. With several years of experience among Commercial Finance Companies we will share our insight into market to ensure the Financial products that you use fit your requirements.

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    PO Finance Companies | Purchase Order Finance Canada | Purchase Order Finance USA

    2. Why would I want to use Purchase Order Financing?

    You may have orders that you cannot fill due to financial constraints or perhaps payment terms with your suppliers and your customers do not match up. With PO Finance you can use Bridge Finance to cover the gap between the terms.

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    3. What transactions qualify to PO Funding?

    To qualify for Purchase Order Finance, you must have a tangible product that you are selling. The finished product must be purchased from your manufacturer complete and then drop shipped to the end customer. PO Finance is not for services or products that need additional processing before they are shipped to the end customer.

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    Purchase Order Finance | Purchase Order Funding | PO Finance | PO Funding | Purchase Order Loan

    4. What kinds of clients use PO Factoring?

    We provide Purchase Order Finance Services to several industries such as:

    • Distributors
    • Exporters
    • Importers
    • Wholesalers

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    5. Is the application process for PO Finance as cumbersome as getting a bank loan?

    No, the process is not nearly as difficult as applying for a loan at your bank. The principal condition is that your customers sell their products to creditworthy companies and that with terms of sale are less than 90 days.

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    6. What Benefits will I receive if I were to use the services of a PO Finance Company?

    The most significant benefit to utilizing Purchase Order Finance is that you will be able to fulfill Purchase Orders that you may not have the capacity to complete otherwise. For a small percentage of the dollar amount of your transaction, you will be able to seamlessly complete the transaction without jeopardizing the relationship of your suppliers or customers.

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    7. I have customers in several different countries; will your Purchase Order Funding Program work with these Purchase Orders as well?

    Yes, we have the capacity to work with Purchase Order Customers worldwide.

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    Purchase Order Finance | Purchase Order Funding | PO Finance | PO Funding | Purchase Order Loan

    8. How long does it take to get set up with Purchase Order Financing?

    In most cases when a full application has been submitted the average turnaround time from the initial conversation about Purchase Order Financing with an Account Executive until your Purchase Order Account is set up will be around 5 to 10 business days.

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    PO Finance Companies | Purchase Order Finance Canada | Purchase Order Finance USA

    9. How exactly does Financing Purchase Orders work?

    The actual transaction not that complicated. When you have the actual PO in your possession you advise the Purchase Order Finance Company to start the process. The initial thing to do is confirm the PO and verify the creditworthiness of the actual purchaser. Assuming the credit review is acceptable, the transaction will proceed like this:

    The PO Financing Company will create a Letter of Credit to the beneficiary, which will be the supplier. The Letter of Credit will verify that the payment to them is guaranteed by them or their bank. This is assuming the supplier will deliver the end product within the specifications of the end buyer. In nearly all cases, suppliers will be happy to accept a Letters of Credit from a Financial Institution as payment.

    The manufacturer builds the goods and ships it as specified as per the end customers specifications.

    The end customer will receive the finished goods and will accept them. The manufacturer will be paid by liquidating the Letter of Credit.

    Your customer will then remit payment for the satisfied Purchase Order as per the Terms and Conditions of Sale. The PO Funding Company will be made whole and paid for their Financial Services and the remaining funds go to your Company.

    Perhaps the best feature of Purchase Order Funding is that many times the client seeking the PO Funding will have very little out of pocket expenditures. This is a scenario where you will be able to complete the transaction using other people’s money for your transaction.

    In nearly all cases, Purchase Order Finance is combined with Accounts Receivable Factoring once the product has been delivered to the final customer because at this time, the Purchase Order has been converted to an Accounts Receivable until payment has been remitted for the order.

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    10. What would the principle reason be that I should want deal with Purchase Order Factoring Companies?

    The most apparent reason would be simply that unless your company has the financial resources to complete the transaction, a third party finance company such as Purchase Order Finance Companies are necessary if you wish to complete the transaction. This service is used by all sizes of companies from very small operations to very large corporations. Even if you do have the resources, often it is better to use other people’s money so you can make better use of your own.

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