High funding limit
Get funding of up to $3 million to pay your suppliers and immediately boost your cash flow.
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
Fulfill buyer orders sufficiently without increased debt
Increase sales opportunities even when capital is limited
Facilitate cash flow for timely deliveries to buyers
Enhance buyer and supplier relationships
Allows purchase of inventory agnostic to seasonal changes
How Purchase Order Financing Works?
Submit the purchase order to the financing company you partner with
he PO financier pays your supplier for the purchase order
The supplier delivers the product, and you issue an invoice to your buyer
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.
Competitive & transparent pricing
Cost of financing can be as low as 0.5% per month basis credit evaluation.
Collateral Free Working Capital
Get access to working capital finance using just your outstanding invoices.
Paperless, swift, hassle-free
Get funded within 24 hours of submitting documents online.
Why Partners and Customers Trust us
$8 Billion+
Trade Financed
9,000+
Buyers & Suppliers
100+
Countries
100,000+
Cross-Border Transactions
Our Investors
Purchase Order Finance Resources
Still not convinced? Let us help
Explore the financing built for growing businesses. Apply once and our team matches you to the right fit.
Vendor Financing
Pay your suppliers upfront and extend your payables up to 90 days, so you keep cash in the business while vendors get paid on time.
Receivables Financing
Turn unpaid invoices into working capital within 24 hours of approval, instead of waiting 30 to 90 days for customers to pay.
Line of Credit
A flexible, revolving credit line you can draw on whenever you need it, and only pay for what you use.
Apply now →
Prefer to talk to us first?
+1 (650) 437 0150 trade@dripcapital.com