Many question the difference between purchase order financing and invoice factoring. Here we will explain the difference and when each form of financing is used.
Purchase Order Financing
Purchase order financing is for importers, wholesalers, and distributors of goods who receive a purchase order (PO) from another business, and need financing to pay their supplier or manufacturer for the finished goods. As an example, we’ll use a toy company that is selling to a big box retailer. The toy company receives a PO from the big box retailer. Read more