Purchase Order Financing
Capital to fulfill large customer orders when you lack the working capital to pay suppliers upfront. Take on bigger contracts without turning them away.
Overview
What Is a PO Financing?
Our Purchase Order Financing program enables product-based businesses to fulfill large customer orders that would otherwise exceed their working capital capacity. When you receive a purchase order from a creditworthy customer but lack the funds to pay your supplier, DD Capital steps in to finance the supplier directly, allowing you to deliver the order and recognize the revenue. Financing covers up to 100% of supplier costs on qualifying transactions, with funding amounts from $50,000 to $25,000,000 per order. PO financing is particularly powerful for distributors, importers, wholesalers, and resellers who win large contracts but face a working capital gap between paying suppliers and collecting from customers. Our advisors structure transactions to ensure you can confidently say yes to the orders that drive your growth.
Key Features
- Financing of up to 100% of supplier costs on qualifying orders
- Per-transaction amounts from $50,000 to $25,000,000
- Direct payment to your suppliers, foreign or domestic
- Funding for both finished goods and pre-production orders
- Works alongside factoring for end-to-end transaction financing
- Available to manufacturers, distributors, wholesalers, and resellers
Process
How It Works
Submit the Purchase Order
Provide the customer purchase order, supplier quote, and details of the transaction. Our team verifies the order, evaluates customer credit, and confirms supplier capability to fulfill the contract.
Approval & Structuring
Once approved, we structure financing terms based on the order size, margin, and timeline. You receive a clear breakdown of fees and payment flow before any funds are committed.
Supplier Paid Directly
DD Capital pays your supplier directly via wire transfer or letter of credit, depending on the structure. Goods are produced or shipped according to your customer's delivery requirements.
Customer Pays, Order Settled
When your customer pays the invoice, the financing is settled and the remaining proceeds, less fees, are released to you. PO financing pairs seamlessly with factoring for an end-to-end working capital solution.
Benefits
Why Choose a PO Financing?
Take on orders that would otherwise exceed your working capital capacity
No equity dilution or balance-sheet debt under most structures
Approval is driven by the strength of the order, not your historical revenue
Enables strategic growth through large contract wins
Supplier relationships strengthened by reliable, timely payment
Eligibility
Qualification Requirements
- Verified purchase order from a creditworthy commercial or government customer
- Gross profit margin of at least 20% on the order
- Identified, vetted supplier capable of fulfilling the order
- Minimum 6 months in business
- Order represents a finished product or pre-sold goods, not speculative inventory
Use Cases
Common Uses
- Fulfilling unusually large customer orders that exceed normal capacity
- Importing finished goods from overseas suppliers
- Funding production runs for pre-sold or pre-ordered inventory
- Securing wholesale inventory at volume-discount pricing
- Bridging the gap between supplier payment and customer settlement
- Pursuing large government or enterprise contracts with extended terms
FAQ
PO Financing Questions
PO financing is specifically designed to cover supplier costs tied to a verified customer purchase order. It is not a general working capital tool. Funds are typically disbursed directly to your supplier rather than to your business account, ensuring the capital is used for the intended purpose. For broader working capital needs, products such as our line of credit or working capital loan may be more appropriate.
We finance purchase orders for finished or near-finished goods, including consumer products, industrial supplies, electronics, apparel, building materials, and many other categories. Highly customized work-in-progress, perishable goods with short shelf lives, and orders requiring substantial post-production assembly may not qualify under standard programs. Your funding advisor can quickly evaluate whether your specific transaction is a fit.
After we receive complete documentation, including the verified purchase order and supplier quote, most transactions can be approved and funded within five to ten business days. International transactions involving letters of credit or freight forwarding may take slightly longer. Our team works to align funding with your supplier's production schedule so there are no disruptions to your fulfillment timeline.
Yes. The two products are highly complementary. PO financing covers your supplier costs upfront, and once the order is delivered and invoiced, factoring can advance funds against the resulting invoice. This combination provides end-to-end financing across the full transaction cycle, from supplier payment to customer collection.
Fees typically range from 1.5% to 6% of the financed amount per 30-day period, depending on transaction size, supplier reliability, and customer credit. Because PO financing is short-term and tied to a single transaction, the total dollar cost is generally a small percentage of the gross profit on the order. Your funding advisor will provide a transaction-specific cost breakdown before you commit.
Ready to Get Started with a PO Financing?
Apply today and a funding advisor will walk you through your options.