Purchase Order Financing
Keep Sales Moving with PO Financing from Gateway Trade Funding.
Gateway Trade Funding offers a finance program that allows your business to purchase inventory from your vendors without drawing on your line of credit.
Gateway provides letters of credit, payments against documents or wires to foreign or domestic manufacturers to cover the cost of pre-sold inventory. Before the product ships, Gateway arranges for the inspection of finished products anywhere in the world.
How Purchase Order Financing Works:
Customer
Issues Purchase Order to Client.
Client
Orders product from Supplier and makes a purchase order request to Gateway, which is then confirmed.
Supplier
Produces products ready to ship once inspection is completed.
Supplier
Ships product and draws on the Letter of Credit, wire or payment against documents.
Gateway
Is repaid from Accounts Receivable proceeds.
Advantages of Purchase Order Funding from Gateway Trade Funding Include:
- ,Supplements existing capital sources.
- Up to 100% financing for pre-sold inventory.
- Off-balance sheet financing, replacing equity investment, and extending your working capital.
- Purchase inventory without drawing on your line of credit.
- Inspection of finished goods anywhere in the world.
- Letters of Credit are issued quickly, without reducing your bank line of credit.
- Unlike banks, other factors, or asset-based lenders, Gateway is repaid directly from the supplier’s accounts receivable.
- Every financing option is expertly customized for you.
- Quick response and fast action.
Who Can Benefit from Purchase Order Funding?
- Start ups.
- Companies growing more quickly than their available credit.
- Companies in turnaround mode.
- Companies in bankruptcy or being reorganize.
What Can Be Financed?
Pre-sold finished goods
- Shipped directly to the client’s customer.
- Shipped to a third-party warehouse,
- For certain transactions, shipped to a client’s warehouse.
Production finance/work-in-process
- With acceptable supplier agreement regarding terms of payment.
- With acceptable collateral from client/principals.
“When we first began working with Gateway, we wanted a Purchase Order Financing firm that would provide us with the financing we needed to grow our business. Gateway not only gave us the means we needed to expand but also made us feel welcome.”
Client Profiles
Companies that benefit from Gateway’s Purchase Order Financing Program Include:
- Importers
- Wholesalers
- Distributors
- Manufacturers
- Others
Typically, we will finance $100,000 up to $10,000,000 in working capital.
A partial list of the types of companies we have funded includes:
Alcoholic Beverages
Apparel
Automotive
Baby Accessories
Beer
Clothing
Commercial Lighting
Commercial Refrigeration
Computer Hardware and Software
Construction
Emergency Preparedness
Food
Footwear
Government Procurement
Home Furnishings
Home Improvement and Hardware
Industrial Fabrics
Industrial Machinery
LED Products
Office Furniture
Pet Food and Products
Promotional Products
Recreational Products
School Supplies
Seasonal Gifts
Sporting Goods
Steel
Technology
Toys
Women’s Accessories
Women’s Handbags
Recent Purchase Order Financing Examples from Gateway Trade Funding
$2M PO Financing Facility
for an importer of PPE products selling to US states, municipalities, corporations, and the federal government.
$500K PO Financing Facility
for a US importer of automotive parts selling to US OEMs.
$1M PO Financing Facility
$500K PO Financing Facility
to a US importer of cosmetic and beauty products to US subscription box companies.