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How purchase order financing works
Purchase order financing enables businesses to fulfill large orders by providing the necessary capital to pay suppliers upfront. When a business receives a purchase order from a customer, but lacks the funds to fulfill it, a purchase order financing provider steps in. The provider pays the supplier directly, allowing the business to fulfill the order and complete the sale. Once the customer pays for the goods or services, the financing provider deducts their fees and remits the remaining funds to the business.
Purchase order financing enables businesses to fulfill large orders by providing the necessary capital to pay suppliers upfront. When a business receives a purchase order from a customer, but lacks the funds to fulfill it, a purchase order financing provider steps in. The provider pays the supplier directly, allowing the business to fulfill the order and complete the sale. Once the customer pays for the goods or services, the financing provider deducts their fees and remits the remaining funds to the business.