“THE PROCESS
OF PURCHASE ORDER FINANCING,
OR PURCHASE ORDER FACTORING”

• The customer submits a purchase order to the seller with all documents.
• The seller submits the purchase order to the financier for purchase
  order factoring.
• The purchase order financier makes a partial payment on the purchase order. The payment is made to the seller’s supplier to cover the cost of the materials on the seller’s behalf.
• The supplier delivers the materials for production to the seller.
• The seller produces and delivers the products to the customer.
• The seller also submits an invoice corresponding to the purchase order
  to the factor.
• The factor submits the invoice to the customer.
• When the factor receives payment on the invoice from the customer the amount of the invoice advance and the factoring fee are deducted, then the remainder (the invoice reserve) is paid to the seller.

 

• Purchase Order Financing FAQ's
• Purchase Order Financing Process
• Reasons for Purchase Order Financing