Purchase Order Financing Examples
Gateway Trade Funding has helped hundreds of clients solve their funding issues. Here are a few purchase order financing examples showing how we have helped a variety of companies obtain the capital they needed to grow.
PO Financing From Gateway Provided A Canadian-Based Watch Company Funding To Take On A New Large Order
Maéstro Watch Co., a Canadian-based watch company, had the opportunity to start working with a new retail client, and they knew they needed financing to take on the large order.
“Gateway Trade Funding provided us with purchase order financing that allowed us to take on a new retail client with a large order. I normally spend my days needing to micro-manage many aspects of the business but not with Gateway. They are so on top of things, knowledgeable about the process, and truly know their stuff. Working with them made things easier now and in the future.” Fabio Manfré, Executive Director, Maéstro Watch Co.
Gateway Trade Funding provided Maéstro with a $500,000 purchase order facility that allowed them to take on the new client faster than most other financing sources would have.
Gateway Helps A Beauty Company Accept A New Large Order And grow
True + Luscious, a clean beauty company, received a large order but lacked the cashflow to accept it. The growing company turned to Gateway Trade Funding to help fill this order with the help of their purchase order financing.
“Gateway Trade Funding has been a power boost in growing my consumer goods business. From PO to Letter of Credit and trade services, the team is exceptionally knowledgeable, supportive, and efficient. As a small business founder, I rely on them for advice and funding while I focus on growing my indie beauty brand. I would highly recommend Gateway as a valuable lending partner for funding business growth and capital needs,” said Mehir Sethi, CEO, True + Luscious.
Partnering with Gateway has provided them with the funding to take on a second large order, truly allowing their business to grow.
Gateway Helps Saga expand
Saga Outerwear needed capital to support increased sales and strategic expansion opportunities. Distribution in the United States, Europe and Asia increased sales exponentially and traditional banks were reluctant to finance. Gateway’s Purchase Order Finance Program ensured on-time fulfillment of Saga’s purchase orders and payment to its vendors, freeing up Saga’s working capital to support expansion. “Gateway helped us to be more aggressive in expanding,” said Saga CEO Andy Mallet. “They helped us bridge a critical gap in funding,” The company now does business in 40 countries via e-commerce and as a wholesaler.
Rapid Sales Increase Funded by Gateway
After David Wise won three X-Games gold medals and the first Olympic gold medal in ski superpose on 4FRNT skis, the company’s sales skyrocketed. Gateway provided working capital to help the company deal with long production lead times and seasonality of its sales. Within five weeks after Gateway was introduced to the company, product was being delivered to 4FRNT. Founder Matt Sterbenz said, “Definitely a high point in my reflection is how quickly we were able to move.” He added that he was most impressed with Gateway’s desire to understand 4FRNT’s business and needs in order to provide customized financial products and services. “They wanted us to come out the other end in good shape.”
Factoring and Purchase Order Financing Combine to Build a Distributor’s Business
When a Canadian distributor of a European manufacturer of innovative ground screws needed funding for large orders, they turned to Gateway Trade Funding. The products are used in construction to establish a foundation in virtually any terrain. As an alternative to concrete slab foundations, the ground screws allow quick and stable foundations to be installed where traditional solutions may not be ideal. However, shipping the product from the Czech Republic meant that there was a considerable lag time between when payment to the manufacturer was due and when the distributor could collect from the purchaser. Gateway, in conjunction with a factor partner, was able to structure a solution involving purchase order financing and factoring that worked well for the distributor, allowing them to create the cash flow needed to complete transactions for customers in both the US and Canada. “The solution was not without several challenges,” said the factor. “Working with multiple players in multiple countries and currencies and funding the significant transportation time all complicated the transactions. Working with Gateway, we were able to fund this and manage all of the logistics and needs of each participant.”
Dog Apparel Company Grows with Help from Gateway Trade Finance
When the dog is part of the family more and more pet owners are treating them as, well… part of the family. That means fashion coats, collars and even PJs all designed to be compatible with human fashion. One of the industry leaders in pushing the doggie fashion envelope to its limit is growing rapidly as a result. The company began attending trade shows selling the styles, and soon expanded to a larger facility. “As our orders grew larger and larger, we needed additional capital to grow. That’s when I was introduced to Gateway Trade Finance,” said the company COO.
Initially focused on specialty retailers, the company received several large orders from mass merchants and it was clear they would need additional capital to fulfill the orders in a timely way. “I was looking for a way to fund growth and the banks were still very reluctant to provide funding. A meeting with the team at Gateway convinced me that their purchase order finance products would be a good fit for our needs,” he said.
Purchase order financing allowed the company to purchase the raw materials needed for large orders and to fulfill those orders quickly. “We did not have to wait for accounts receivable dollars to come in before committing to large orders. Instead, Gateway handled the financing with our vendors in such a way that we could focus on timely delivery while they advanced the funds we needed.” As the company continues to expand it will continue to rely on Gateway. “I consider Gateway to be a partner. When we have a financial need, we can always turn to them and they will help us find the optimal solution. They are always there for us.”