“PURCHASE ORDER FINANCING
AND PURCHASE ORDER FACTORING:
WHY COMPANIES USE THEM”

Insufficient Capital

Company has solid export/import or domestic sales but does not have the working capital needed to complete the transaction or continue to grow.

International Expertise

Company doesn't have the expertise or experience to structure and complete the import/export process properly. Even established international clients will use our expertise to make a transaction safer.

Alternative Financing Versus Giving Away Equity in a Fast Growing Company

Purchase Order financing provides working capital when banks will not because
of the company's balance sheet or its collateral will not support sufficient borrowing. An equity placement would force the owners to give away a high percentage
of the company.

Timing

Often clients need a quick response in order to get or keep a sale. Praxis Capital can quickly do its due diligence and review the facts of the transaction.

Enhance Profits

Clients can grow more quickly by having the capital available to do more business. Clients brokering goods can become principals thus increasing their margins. Our clients can expand their margins, save on various costs and increase supplier credit extended to them.

Disguise Our Client's Identity

Our clients that are middlemen need transactions secured in such a way that the end buyer and manufacturer do not become acquainted. In these situations the end buyer typically issues a letter of credit to our client, and we issue a letter of credit
to the manufacturer.

Operational Support

If desired, Praxis Capital can, to a great extent, become the international operations area for a company, thereby allowing a cost savings and providing expertise
to international transactions.

“PURCHASE ORDER FINANCING AND PURCHASE ORDER FACTORING: WHY COMPANIES USE THEM”

“PURCHASE ORDER FINANCING
AND PURCHASE ORDER FACTORING:
WHY COMPANIES USE THEM”