The best purchase order (PO) financing companies will offer low rates, excellent customer service, and repayment terms of at least 90 days. Many companies will also have a combination of fast funding speeds, easy qualification requirements, and large funding amounts.
Since the most suitable financing option will vary based on your company’s circumstances, we’ve selected lenders that offer a range of features and characteristics. If you’re in need of funding to purchase materials in order to fulfill orders for your customers, consider our top recommendations for purchase order funding::
- SouthStar Capital: Best overall for favorable rates and repayment terms
- AdvancePoint Capital: Best for startups and newly established businesses
- SMB Compass: Best for high-potential profitable businesses
- King Trade Capital: Best for businesses with limited resources
- Purchase Order Financing: Best for international trade financing
- Liquid Capital: Best for businesses needing quick financing options
Best Purchase Order Financing Companies at a Glance
Estimated Fees Per 30 Days | Maximum Financing Amount | Required Profit Margin | Funding Timeline | Repayment Term | |
|---|---|---|---|---|---|
 | 1% and up | $10 million | 20% | 2–5 days | Up to 120 days |
 | 3%-7% | $500,000 | Varies | 2-10 Days | Up to 90 days |
 | 1.5%–3.5% | $10 million | 30% | 7–21 days | Up to 90 days |
 | 1.5%–3.5% | $20 million | 7–10 days | Up to 90 days | |
 | 1.5%–5% | $25 million | Varies | 7–14 days | Up to 90 days |
 | 2%–4% | $10 million | Varies | As fast as 24 hours | Up to 90 days |
SouthStar Capital: Best Overall for Favorable Rates & Repayment Terms
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Application Time | 10–20 minutes |
Funding Timeline | 2-5 days |
Repayment Schedule | Fulfilled once the invoice has been paid |
Repayment Term | 30–120 days |
Collateral Required | None |
Minimum Down Payment | None |
Rate and Fees | Starting at 1% per month |
Loan Amount | Up to $10 million |
Minimum Time in Business | None |
Minimum Profit Margin | 20% recommended |
Qualifying Order Types | Tangible goods, specific services |
Why We Like SouthStar Capital
Of all the lenders in our guide, SouthStar Capital offers purchase order funding with the lowest starting rates and the most flexible repayment terms. It offers extensive experience working with both business and government contracts and can provide financing options for both tangible goods and some services.
Qualification criteria vary but are inclusive of businesses of all sizes and industries. The tenure of your business is also not a definite requirement, and while there’s no minimum profit margin required, at least 20% will help your chances of approval.
Also offered is accounts receivable (A/R) financing, which can be combined with its PO financing. This allows your business to place orders with suppliers, in which the company will use PO financing to fulfill the payment, and you can use A/R financing to pay off the PO financing debt.
AdvancePoint Capital: Best for Startups & Newly Established Businesses
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Application time | 5 minutes |
Funding timeline | 2–10 days |
Repayment schedule | Fulfilled once the invoice has been paid |
Repayment term | Up to 90 days |
Collateral required | Not mentioned |
Minimum down payment | Not mentioned |
Rate and fees | 3%-7% |
Loan amount | $500,000 |
Minimum time in business | None |
Minimum profit margin | Not mentioned |
Qualifying order types | Finished goods |
Why We Like AdvancePoint Capital
If you’re a brand new business needing funding for cash flow purposes, AdvancePoint Capital is an excellent option. It can provide financing for startups, even if it’s your company’s first transaction. Its purchase order financing product is best suited for startups that have cash flow issues, have large orders, cannot get approved for other loans, or have experienced fast growth.
It offers flexible terms and qualification requirements. There are no long-term commitments, and you can qualify even if your business has bad credit since the creditworthiness of your company’s customer is what determines the likelihood of being repaid.
You can visit the AdvancePoint Capital website and provide your contact information for a quote. To expedite the quote and approval process, you can prepare copies of your purchase orders, basic supplier information, and customer invoice information.
SMB Compass: Best for High-potential Profitable Businesses
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Application Time | Within 10–20 minutes |
Funding Timeline | 7–21 days |
Repayment Schedule | Fulfilled once the invoice has been paid |
Repayment Term | Up to 90 days |
Collateral Required | None |
Minimum Down Payment | None |
Rate and Fees | 1.5%–3.5% per 30-day period |
Loan Amount | $25,000–$10 million |
Minimum Time in Business | None |
Minimum Profit Margin | 30% |
Qualifying Order Types | Finished, assembled products |
Why We Like SMB Compass
SMB Compass’ profit margin requirements are high compared with other providers on this list; however, loans are competitively priced and available to businesses industry-wide. Qualified applicants can receive low rates and financing up to 100%.
Notably, it has no collateral requirements other than the PO orders themselves. This is beneficial for businesses that have high earning potential, can meet the minimum requirements, and can take advantage of favorable rates.
The application and approval process is relatively quick, and you can submit an application online and receive funds (if approved) within 21 days. Businesses that have less-than-ideal credit, have limited time in business, and sell to other business or government customers can all apply.
King Trade Capital: Best for Businesses With Limited Resources
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Application Time | 10–20 minutes |
Funding Timeline | 7–10 days |
Repayment Schedule | Fulfilled once the invoice has been paid |
Repayment Term | 30–90 days |
Collateral Required | Not mentioned |
Minimum Down Payment | Not mentioned |
Rate and Fees | Generally, 1.5%–3.5% per month |
Loan Amount | Up to $20 million |
Minimum Time in Business | None |
Minimum Profit Margin | None, but 20% recommended |
Qualifying Order Types | Tangible goods |
Why We Like King Trade Capital
King Trade Capital has a long track record of supporting small businesses. When determining eligibility, consideration of business potential and customer reliability has more precedence than financial statements and credit history of your business.
You’ll need to visit its website and submit some details regarding your funding request for more information; however, it offers competitive rates, quick access to funds, and flexible repayment options. Depending on your funding request, rates and terms will vary.
It provides purchase order funding based on valid POs by reliable businesses or government entities. It also funds transactions with suppliers with a proven track record and helps your business keep up with order demand. King Trade Capital also has a strong focus on international trade and has plentiful experience in working with supply chains and trade finance.
Purchase Order Financing: Best for International Trade Financing
| |
Application Time | 10–20 minutes |
Funding Timeline | 7–14 days |
Repayment Schedule | Fulfilled once the invoice has been paid |
Repayment Term | Not specified, estimated 30–90 days |
Collateral Required | None |
Minimum Down Payment | None |
Rate and Fees | Estimated 1.5%–5% per month |
Loan Amount | Up to $25 million |
Minimum Time in Business | None |
Minimum Profit Margin | Varies |
Qualifying Order Types | Tangible products |
Visit Purchase Order Financing
Why We Like Purchase Order Financing
PurchaseOrderFinancing.com facilitates strictly PO financing to qualified businesses needing funding to fulfill sales orders. Serving the US, UK, Canada, and China, your business can receive up to 100% to cover supplier costs—as long as you have a PO from a creditworthy commercial or government client. Of the lenders in our guide, it has the most extensive international trade financing experience and offers higher financing amounts in comparison.
Instead of using qualification criteria applicable to traditional banks, PurchaseOrderFinancing.com considers the track record of your customers. No matter the size of your business, resources are available to support your financing needs.
The application process generally has a quick turnaround for approval decisioning. The website doesn’t provide general information regarding rates, fees, and terms; however, you can submit a funding request and learn more about financing options from a representative.
Liquid Capital: Best for Businesses Needing Quick Financing Options
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Application Time | 10–20 minutes |
Funding Timeline | As little as 24 hours |
Repayment Schedule | Fulfilled once the invoice has been paid |
Repayment Term | Up to 90 days |
Collateral Required | None |
Minimum Down Payment | Not mentioned |
Rate and Fees | Estimated 2%–4% per month |
Loan Amount | Up to $10 million |
Minimum Time in Business | None |
Minimum Profit Margin | Varies |
Qualifying Order Types | Tangible goods |
Why We Like Liquid Capital
Liquid Capital is unique in that it offers a variety of products, specializing in asset-based financing. Such products include PO financing, invoice factoring, and inventory financing—all of which can support the needs of your business. It’s our pick for quick access to financing since you can receive funding in as little as 24 hours, which is the shortest funding timeline on our list.
Available to companies that receive finished (or almost finished) goods from their suppliers, businesses can use Liquid Capital’s PO financing to bridge the financing gap for growing businesses needing to keep up with demand. If approved, Liquid Capital will finance up to 100% of the product cost, allowing you to purchase products quickly.
Keep in mind that applications are considered on a case-by-case basis, and rates and terms will vary. Qualification criteria may differ depending on the funding request, as specific rates are not indicated on the website. However, it can be beneficial for your business to take advantage of the company’s quality assurance and 24/7 support.
How We Selected the Best Purchase Order Financing Companies
Here are some of the key factors we considered when choosing the best purchase order financing companies:
- Experience of the provider
- Ease of application
- Qualification standards
- Amounts, rates, and fees
- Funding timeline
When choosing a PO financing company to support your business, you’ll have a few factors to consider. Keep in mind the following question when making your decision:
- What level of experience does the company have?
- How does the company pay the supplier?
- How quickly will you receive the funds?
- What are the fees involved?
- Are there collateral or guarantee requirements?
- How will payments from customers be handled?
- What documentation is necessary?
- Invoice factoring: Similar to purchase order financing, invoice factoring provides an advance on payments from invoices you’ve sent to customers. The main difference between the two is that invoice factoring is applicable after the invoice has been sent. For a provider, visit FundThrough, our top pick for quick and flexible invoice factoring options.
- Small business loan: You can use a small business loan for a variety of business purposes and receive a lump sum of funds that can be paid off in monthly installments. For guidance, see our article on how to get a small business loan. If you’re looking for a provider, check out SBG Funding, as it offers a variety of small business financing options that can help support your business.
- Rollover for business startups: A rollover for business startups (ROBS) allows you to use funds from your personal retirement account for investments of $50,000 or more. To learn more, visit Guidant Financial, to check out its ROBS financing options.
- Business line of credit: As a revolving credit facility, you can use a small business line of credit to finance purchases with limited restrictions. You can request a draw when needed and repay the balance over time. If you need a resource, head over to Bluevine, as we consider it to be one of our best business lines of credit providers.
- Business credit card: Like a line of credit, a business credit card can be used on an as-needed basis to finance business purchases and be repaid over time. For recommendations, see our roundup of the best small business credit cards.
- Working capital loan: This type of financing option is good for covering regular business expenses. Common examples can include things like payroll, rent, equipment, inventory, and utilities. As you’ll see in our picks for the best working capital loans, this financing option can take the form of many of the alternatives we mentioned above.
Frequently Asked Questions (FAQs)
No. PO financing is typically easy to get, even if you are a startup with bad credit. Approval criteria generally revolve around the creditworthiness of your customers, the reputation of your supplier, and the nature of the goods or services being provided.
Any business that is short on cash but needs funds to purchase materials for orders can benefit from PO financing. This can include fast-growing businesses, startups, and companies that cannot get approved for other types of financing.
PO financing typically costs anywhere from 1% to 7% per month. This can vary based on the lender you choose, your supplier’s creditworthiness, and the type of goods or services being produced.
Bottom Line
If you have orders to fulfill but don’t have sufficient funds to obtain the necessary materials, PO financing can help. It is typically easy to get, as many lenders place a greater emphasis on the qualifications of your customers and suppliers. Although terms may vary, the companies we’ve selected in our guide have a wide range of eligibility criteria, loan amounts, fees, and other financing terms that should suit your business needs.
