Email this pageTrade Financing & Purchase Order Financing
Deschutes Capital assists contract manufacturers, importers and other trade professionals, that require in excess of $5 million in financing and have a gross margin of at least 35%, obtain purchase order financing and trade financing. As contract manufacturers, importers and traders know, manufacturers may prefer assurance, prior to scheduling production, that payment can be made when the respective product is ready to be shipped. When your manufacturer is not able or willing to extend credit due to your company's capital or cash constraints, purchase order financing can be an acceptable alternative.
How It Works:
Purchase order financing provides the manufacturer, of your order, with a letter of credit ( LOC ) to ensure payment upon them producing the product your purchasing. 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 the customer and the goods delivered, the respective accounts receivable financing or factoring facility makes payment to close out the purchase order financing. Purchase order advance rates typically cover up to your firm's cost for the respective product.
Benefits:
Purchase order financing allows companies which do not have sufficient cash, collateral for a letter of credit or credit, to exploit trade opportunities, when they have credit worthy customers that are willing and able to purchase their product(s).
By working with Deschutes Capital, contract manufacturers, importers, trade arbitragers, traders, trade originators and other trade professionals, can leverage their capabilities by benefiting from our financial markets knowledge and relationships.
Next Step:
Our corporate finance services are flexible, creative and aggressive to help you obtain purchase order financing or trade financing at a competitive rate. Deschutes Capital welcomes the opportunity to work with you and your company. Whether you need collateral for a letter of credit for working capital or to acquire long-term capital investments, please submit a corporate finance inquiry form so that an account executive can call to discuss your purchase order financing and trade financing needs.
To explore the full range of financing that Deschutes Capital can structure and arrange, please go to the top of this page and click on the corporate finance service which is best suited for your company and circumstances.
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