Are Your Sales Efforts Caged-In , for Fear of actually getting a Larger Order ? Our Purchase Order Funding Program could be the answer.
Purchase Order Financing is provided to businesses that produce goods or services " in house " and are having difficulty filling orders because of larger than anticipated demands. Financing is based on the amount needed to produce, insure and ship the product, not on the amount of the invoice. Fees tend to be higher than with selling accounts receivable invoices, and advances tend to be lower as there is a greater risk to the investor. However, Purchase Order Financing is often an excellent option for companies needing cash to complete a large order. In fact, many companies find that with Purchase Order Financing, they are able to secure larger, more profitable contracts than before. You capitilize on your true potential ! This is How it Works - Customer places order with You
- You place order with Supplier
- We locate a Funding Source that pays Supplier
- Supplier delivers directly to your Customer ( or to you if still incomplete product)
- Customer pays Funding Source
- Funding Source pays You less his discount.
You take the orders YOU want without fear of insufficient funds and allow your business to GROW like it should. The following are three examples of how Purchase Order funding helped real businesses: Case Study # 1: P.O. Financing created win/win for bank and company. The Challenge : BWO had been the client of a bank for about 5 years, with a loan covering $400,000 for inventory and $400,000 for receivables. However the bank sensed that there was something wrong and wanted to get BWO off their books. The Solution : A Purchase Order investor was brought in to look at the situation. After verifying that BWO did have $4million of purchase orders from good companies, and that the factory would be abrm according to the stipulations of their contracts, the P.O. investor was able to present the bank with a solution whereby they would a) buy the accounts receivables and b) work on the remaining $400,000 - contracting to pay $10,000 off the top of each contract until such time as the $400,000 was paid off. The Benefit : In this case the bank was paid off in 5 months, as opposed to the 2 years that they had calculated it would take. BWO became so profitable that the company was sold 10 months later. Case Study # 2 : P.O.Funded a budding Inventor, now his business is a thriving success. The Challenge : An inventor was able to get his invention in front of the buyer for a major chain. The buyer loved it and wanted to sell it through a small percentage of their stores as a test. With the success of the test this product was added to the inventory of the entire chain.The problem was the inventor was using a contract manufacturer who needed to be paid 50% up front and the balance upon delivery. The inventor did not have the money to do it and was about to lose the order. The Solution : The inventor qualified for contract financing, which paid for the invention to be made, packaged, insured and shipped. The Benefit : The Inventor was successfully able to fill his orders, he continued with the the sale and distribution of his popular invention. As his order books grew so with P.O. financing he was able to grow his business. Case Study # 3 : P.O. Financing kept supply chain active and transportation support company in business. The Challenge: TSI is a business that supplied parts to their region's Mass Transit Authority (MTA), to keep their rolling stock in good running condition. They had built up a solid reputation for the production of timely quality work. The small business obtained contracts, provided technical specifications for manufacturing work that was contracted out, and carried out inspecitions before packaging and distributing to the Transit Authority. The manufacturer ,to whom work was being contracted out, decided to increase his up front payment requreiments to manufacture the goods on order. The Solution : TSI used P.O. funding to ensure the production could be started. The P.O. funder was able to swiftly analyze the situation, guarantee the availabilty of the funds required to keep the production line flowing. The Benefit : Through Purchase Order funding TSI's business was able to remain viable. Rather than having to go out of business, the delivery to the MTA continued and TSI remained on the approved vendor list, continuing to receive and fulfill contracts and overcome their difficulties. Purchase Order funding is just one of the flexible options
FRFS offers you.
Remember you don't need to add debt
when you infuse your business with cash.
At Front Range Funding Solutions we recognize that each client is unique, and we are committed to working with you to develop a personalized financial plan for your company. We can help you achieve your business objectives across all phases of financial management. | 
