Boston
Financial Corporation’s Purchase Order Financing Program (also
known as "Prefunding") advances funds against purchase
orders issued by credit-worthy companies, allowing businesses
to pursue orders larger than their credit normally allows. It
also lets companies take advantage of bulk purchase discounts,
and purchase goods from suppliers with whom credit has not yet
been established or who may demand upfront cash.
On
occasion, a company may be requested to deliver goods or services
that require substantial "up-front" costs before an
invoice can be submitted. Or, the company may be asked to deliver
goods, but may not have sufficient working capital or cash reserves
for the raw materials or added labor needed to complete the order.
This is where BFC can help.
BFC
evaluates each request on a case-by-case basis. The product or
service to be "prefunded" must be consistent with the
client’s usual line of business. All funds advanced against a
purchase order must be used for labor, materials, equipment or
other expenses associated with the satisfaction of the purchase
order.
The
process of Purchase Order Financing is simple:
 |
Your
purchase orders are prefunded with working capital from
BFC. |
|
Your
goods or services are delivered to your customer. |
|
The
invoice for the goods (services) delivered is factored by
BFC. |
|
Funds
from the factored invoice are used to pay off the prefunded
amount |
Companies that take advantage of Prefunding have the ability to
accept larger orders or to bid for more business. This results
in a substantial increase in their gross volume of business, which
generally translates into greater net profit.
If
you are interested in Purchase Order Financing, Call us today
at (617) 286-1000
or Submit an Online Funding
Request Now!
