(847) 861-1720

Purchase Order Financing

Keep Sales Moving with PO Financing from Gateway Trade Funding.

Purchase Order financing from Gateway Trade Funding 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.

PO Financing Keeps Sales Moving

What is Purchase Order Financing?

Purchase Order financing is quick, short-term financing used to fund goods supplied by a third-party manufacturer or distributor to fulfill confirmed purchase orders from a company’s customers. It is often used by companies that don’t have enough cash flow to purchase inventory to complete new or large orders they want to take on to grow.  

PO Finance companies help businesses by paying their suppliers directly, in most cases via a bank-issued letter of credit to ensure the goods needed to fill the order are received in a timely manner.  In most cases, an accounts receivable lender will advance proceeds once the customer is invoiced and pay the purchase order finance company directly.

How PO Financing Works:


Issues Purchase Order to Client. 


Orders product from Supplier and makes a purchase order request to Gateway, which is then confirmed. 


Produces products ready to ship once inspection is completed.


Ships product and draws on the Letter of Credit, wire or payment against documents.


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, including freight and duty.
  • 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?

  • Startups.
  • Companies growing more quickly than their available credit. 
  • Companies in turnaround mode. 
  • Companies in bankruptcy or being reorganized. 

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.

Client Profiles

Companies that benefit from Gateway’s PO 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 provided purchase order financing to includes:

Alcoholic Beverages



Baby Accessories



Commercial Lighting

Commercial Refrigeration

Computer Hardware and Software


Emergency Preparedness



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




Women’s Accessories

Women’s Handbags

Recent Purchase Order Financing Examples from Gateway Trade Funding

Purchase order financing examples of PPE from Gateway Trade Funding

$2M PO Financing Facility

for an importer of PPE products selling to US states, municipalities, corporations, and the federal government.

Purchase order financing examples of car parts from Gateway Trade Funding

$500K PO Financing Facility

for a US importer of automotive parts selling to US OEMs.

Purchase order financing examples of PPE mask from Gateway Trade Funding

$1M PO Financing Facility

for a US importer of PPE products selling to the US government and US corporations.
Purchase order financing examples of cosmetics from Gateway Trade Funding

$500K PO Financing Facility

to a US importer of cosmetic and beauty products to US subscription box companies.

Put our purchase order financing experts to work for your business today! Simply complete our application or give us a call at (847) 861-1720.

What Our Clients Say

"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."