Deschutes Capital provides purchase order financing and trade financing to companies that require in excess of $2 million and have a gross margin of at least 30%. As importers know, the manufacturers they are ordering from typically prefer a letter of credit, prior to scheduling production, to ensure that payment will be made prior to shipping the respective product. If your company does not have sufficient resources, due to your company's capital or cash constraints, to provide collateral for a letter of credit, obtaining secured financing with your purchase orders may be the way to go. Purchase order financing can be used as an alternative financing method or non-bank financing method to finance:

• importers' accounts receivable and inventory
• distributors' accounts receivable and inventory and
• industrial accounts receivable and inventory.

How It Works:

Purchase order financing provides the manufacturer you are ordering from with a letter of credit and funds to produce and ship the product to your company. This further accelerates cash flow and eliminates the need for your company to provide the collateral required to secure a letter of credit. Upon the invoice being issued to your customer after delivering the goods to them, the respective accounts receivable line of credit or factoring facility will pay the purchase order financing lender.

Deschutes Capital appreciates the opportunity to explain our corporate finance services. We can save you time and money and allow you to focus on running your business. Whether you need collateral for a letter of credit for working capital or need to leverage your equity to exploit a current opportunity, contact Deschutes Capital today about purchase order financing.

Advantages / Benefits