What Is Purchase Order Financing?
Purchase Order Financing (PO Financing) gives your business the power to accept large customer orders—even if you don’t have the cash on hand to fulfill them. Instead of turning away opportunity due to supplier costs, Lily Pad Financial pays your vendors directly so you can deliver on contracts and scale without debt.
This is not a loan—it’s a transaction-based funding solution where we finance the cost of goods required to fulfill your customer’s purchase order. It’s fast, flexible, and structured to support growth-stage businesses, resellers, and wholesalers.
Why Use PO Financing?
- Fulfill large orders without straining working capital
- Improve supplier relationships with fast, guaranteed payment
- Take on new contracts or government bids with confidence
- Bridge gaps between customer orders and final invoice collection
- Global supplier support – works with domestic or international vendors
If you’ve ever passed on an order due to lack of cash or production capacity, purchase order financing may be your best solution.
Who Is PO Financing For?
We work with product-based companies who sell finished goods to commercial buyers. You must have a verifiable purchase order (PO) and a reputable end-buyer.
- Wholesalers and Distributors
- Import/Export Businesses
- Government Contractors
- Private Label Manufacturers
- Apparel and Fashion Brands
- Consumer Goods Producers
How Purchase Order Financing Works
- Receive a purchase order from your customer.
- Submit the PO to Lily Pad Financial along with supplier estimates.
- We pay your supplier directly (via wire or letter of credit).
- Your supplier ships the goods to your customer.
- You invoice the customer, and payment is sent to us.
- We deduct our fee, and forward the balance to you.
This process allows you to grow sales without relying on loans or tying up your operating cash.
Funding Details
- Up to 100% supplier funding depending on PO strength and buyer credit
- Transactions from $25,000 to $2,000,000+
- Domestic and international supplier payment options available
- Letters of credit and wire transfers supported
- Paired with invoice factoring for end-to-end funding
Why Choose Lily Pad Financial?
Unlike banks and generalist lenders, Lily Pad Financial specializes in transactional-based funding. We understand purchase cycles, supply chain timing, and the importance of vendor confidence. Our program is a high-level service.
We approve businesses based on order strength and buyer credit, not your business’s balance sheet. That means no tax returns, no collateral, and no long waits. If you have a PO, we have a path to fulfillment.
PO Financing + Invoice Factoring = End-to-End Cash Flow
We also offer bundled funding solutions. Once your product is delivered and the invoice issued, we can factor the invoice to keep your cash cycle moving. This dual approach provides full liquidity from supplier deposit to customer payment.
Common Use Cases
- Funding overseas apparel manufacturers for private-label orders
- Paying domestic suppliers to produce high-volume inventory
- Supporting rapid growth for import/export wholesalers
- Fulfilling large government or corporate procurement contracts
FAQs – Purchase Order Financing
Q: Do I need perfect credit?
A: No. We fund based on the strength of your customer and purchase order—not your personal or business credit.
Q: What if I also need help with collections?
A: That’s where our invoice factoring program comes in. After delivery, we can advance funds on your invoice to complete the cycle.
Q: Can you fund overseas suppliers?
A: Yes. We can wire funds directly or issue a letter of credit to qualified foreign vendors, depending on the situation.
Q: Can this work with government contracts?
A: Absolutely. Many government contracts require upfront fulfillment. We’re experienced in working with federal, state, and municipal purchase orders.
Ready to Fulfill Bigger Orders?
Don’t let cash limitations hold you back from growth. Our Purchase Order Financing program puts you in control of your supply chain.
Apply Today or call (866) 220-1137 to speak with a PO financing specialist.