Purchase Order Financing (PO Finance) for US Importers

Pay your vendors on-time with Drip Capital's Purchase Order Financing program

How does Drip Capital's Purchase Order Financing Work?

One of the most critical problems that trading businesses in the United States have to deal with are linked to working capital issues. This is a situation where a businesses needs to procure raw materials or finished goods in order to sell the goods further down the supply chain. However, there is always a looming risk of over-trading which refers to a situation where the buyer locks all of his capital into procurement of these raw materials or goods which can lead to a lack of funds for covering the operational expenses. Drip Capital's is a company that specializes in PO funding services, a financing arrangement wherein an institution extends a loan against a purchase order, the purchase order is a legal document that acts as a proof of transaction. Due to the enforceablility, lenders like Drip Capital can extend PO loans at competitive rates that companies can use to fuel further business growth

What are PO financing Interest Rates?

Typically, small to medium sized businesses in the United States can expect an interest rate between 9% to 14% per annum for funds received against their purchase orders, this however, differs depending the risk profile and the business fundamentals. In addition to the interest rates, the business may also have to pay processing fees and overdue charges as the total cost for opting for PO funding

What type of companies can avail PO financing services?

Trading companies and manufacturing firms generally avail PO funding solutions, this includes startups of all sizes, government agencies, international businesses and importing businesses

What type of companies can avail PO financing services?

Trading companies and manufacturing firms generally avail PO funding solutions, this includes startups of all sizes, government agencies, international businesses and importing businesses

What does a purchase order financing company do?

A PO financier verifies the authenticity of the purchase order, evaluates the capability of the buyer to make the payment against the goods delivered and also evaluates the credditworthiness of the borrowing company. Some of the best rated PO finance companies also provide advisory services and assist with procurements, buyer verification etc

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Fulfill buyer orders sufficiently without increased debt
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Increase sales opportunities even when capital is limited
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Facilitate cash flow for timely deliveries to buyers
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Enhance buyer and supplier relationships
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Allows purchase of inventory agnostic to seasonal changes

How Purchase Order Financing Works?

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Submit the purchase order to the financing company you partner with
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he PO financier pays your supplier for the purchase order
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The supplier delivers the product, and you issue an invoice to your buyer
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You sell the invoice to your factoring company who pays the PO funder, plus the fees and pays the remaining invoice balance to you

Why Choose Drip Capital?

We are a fintech company focused on solving the working capital problem for emerging market SME exporters by leveraging data and technology. We are re-building core parts of international trade finance infrastructure to level the playing field for small businesses.
High credit limit
High credit limit
You can avail a credit line upto $2.5 million and immediately boost your cash flow.
Competitive & transparent pricing
Competitive & transparent pricing
Cost of financing can be as low as 0.5% per month basis credit evaluation.
Collateral Free Working Capital
Collateral Free Working Capital
Get access to working capital finance using just your outstanding invoices.
Paperless, swift, hassle-free
Paperless, swift, hassle-free
Get funded within 24 hours of submitting documents online.
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The solution to your working capital problems is just one click away

Quick Facts on Drip Capital

$3 Billion+

Trade Financed

6,000

Buyers & Suppliers

100+

Countries

60,000

Cross-Border Transactions

Our Investors

accel
wing
yc
sequoia

Growth Stories

Meat Wholesaler in California

We were able to accept more orders from existing customers and also started working with some of the popular retail chains. This meant that we had to keep our cash flow healthier than ever to fulfil this increase in demand. It's a nice problem to have as a growing business and it helps when you have a partner like Drip.

Coffee Importer in Florida

Using our bank lines to pay suppliers while cargo is still on water didn't fit very well with our working capital cycle, and we wish we would've known about Drip earlier. They have been really supportive in our growth and are helping us scale faster through both inventory and supply chain finance.

Seafoods Trader in Florida

Drip's credit line and financing process is transparent and works perfectly with our current bank. Thanks to them we are now able to purchase best quality products from reputed suppliers at attractive prices by paying upon shipment. I can now say that we're maximising our cash-conversion cycle in true sense.