Client gets a purchase order from credit-worthy customer for $50,000 or more ($50,000 is minimum per customer PO; multiple suppliers of finished goods is permissible provided the minimum is met.
Clientsubmits required information (see attachment)
P.O. funder buys product from client's supplier and delivers to either client or customer directly
Client invoices customer and factors invoice with iCFO Capital & authorizes iCFO Capital to pay PO funder
iCFO Capital pays funder from funds available from invoice factored and balance (less PO financing and factoring fee) is paid to client
As to p.o. finance here are some general guidelines:
Client gets a purchase order from credit-worthy customer for $50,000 or more ($50,000 is minimum the p.o. funder will consider)
Clientsubmits required information (see attachment)including FINISHED product required to fill order from customer
P.O. funder buys FINISHED product from client's supplier and delivers to either client or customer directly
Client invoices customer and factors invoice with iCFO Capital & authorizes iCFO Capital to pay p.o.funder
iCFO Capital pays p.o.funder from funds available from invoices factored and balance is paid to client
There is an alternative to p.o. finance to cover situations whereby there is production involved (not finished goods purchased and sold). This is Trade Finance & the minimum is $300,000. Here's the basic scenario:
Client has purchase order for from credit-worthy customer for $300,000+
Primary cost ( 75% or more) is material. The funder will not consider funding against labor costs
Same information required as in attachment is submitted to funder
Funder buys material & delivers to client
Client completes product and invoices customer
Client factors invoice with iCFO Capital & directs iCFO Capital to pay funder
iCFO Capital pays funder from factored invoices and pays client balance