What is Purchase Order Financing?

Purchase Order Financing (also called PO financing) is a funding option for businesses that need cash to fill customer orders before delivering a finished product.

Commonly, Purchase Order Financing is used by importers & distributors who have pre-sold their goods, or they already have a Purchase Order (PO) for these goods from a customer. PO Financing is similar to invoice factoring, but it’s for companies who already have a PO in place.

Purchase Order Financing helps the company fulfill the customer PO by paying the supplier who manufactures or sources the finished product.  A Letter of Credit is often used to pay for goods coming from overseas and is a popular solution for importers, providing protection from the inherent risks of ordering internationally, while also giving suppliers assurance of payment for their shipments.  Using this method, our client is able to deliver finished product to the customer and can factor the invoice for even greater cash advantages.

Once the goods are delivered to the customer, the business can also use invoice factoring to convert the invoice into immediate cash flow—creating even greater working capital advantages.

Who Can Benefit from PO Financing?

PO Financing allows a company to fulfill customer POs without using its own capital. This benefits start-ups or companies with seasonal sales or simply inconsistent cash flow. It also gives established companies the confidence to pursue larger sales.  PO Financing answers the capital needs of companies who do not qualify for traditional lending solutions and business owners can keep their equity instead of giving up large shares to investors.

It also gives established companies the confidence to take on larger orders they might not otherwise be able to fund on their own.

For many, purchase order financing for small businesses is especially valuable because it provides access to working capital even when traditional bank loans are not an option. Business owners can maintain equity in their company instead of giving up ownership shares to outside investors.

Why Businesses Should Use PO Financing

There are many reasons why companies turn to purchase order financing as a flexible funding solution. Unlike traditional loans, PO Financing provides quick access to working capital based on confirmed customer orders rather than company credit history.

Key Benefits of PO Financing:

• Supports small businesses that may not qualify for traditional bank lending.
• Enables companies to take on larger orders and expand without straining existing cash flow.
• Helps importers and distributors manage international supplier payments with tools like Letters of Credit.
• Provides a strategic advantage by allowing businesses to scale confidently while maintaining equity.

Ultimately, purchase order financing helps businesses grow by ensuring they never have to turn down a customer order due to lack of funding.

How Riviera Finance and Partners Can Help with Purchase Order Financing

At Riviera Finance, we provide purchase order financing solutions through our trusted affiliate, International Trade Finance. This partnership ensures that businesses of all sizes—especially small businesses and distributors—can access the capital they need to fulfill larger customer orders without cash flow interruptions.

Whether you’re an importer managing overseas suppliers or a growing company pursuing bigger opportunities, our PO financing services are designed to help you deliver on customer orders with confidence.

Contact a Riviera Finance business manager today to discuss your financing needs and get started with Purchase Order Financing that supports your growth.