Purchase Order Finance

trade finance

Global Asset Finance Limited and Partner’s Purchase Order Finance with Invoice Finance provides businesses with funding to purchase finished goods from within the UK or overseas, in order to fulfil confirmed orders from customers.

We make payments directly to your supplier (up to 100% of the purchase price), and once the goods have been delivered we provide funding against the value of your customer invoice.

Purchase Funding with Invoice Finance provides support to you through the entire sales process from purchasing goods from your supplier to receiving payment from your customer, helping you maintain a healthy cash flow.

Benefits of Purchase Order Finance to you and your business:

  • We can fund the whole of your sales process for you
  • We will issue a Letter of Credit (if required guaranteeing payment to your supplier so you have the peace of mind that your order is going to be fulfilled without you having to release any hard earned cash up front as a deposit or full payment in advance
  • We’ll pay your supplier upon proof of shipment with advanced funding of up to 100% of the invoice value, so you don’t have to provide the cash yourself
  • You can source new suppliers overseas giving you the freedom to expand your business with new or better products or possibly better prices
  • Global Asset Finance Limited and partners has multi-currency facilities, meaning you don’t have to worry about arranging fund transfers or calculating exchange rates – we’ll do this for you
  • We can pay your import VAT and Duty payments so you don’t have to provide funds up front to make payments or ask your freight forwarder to make payments on your behalf
  • Take advantage of our complete credit control service – our team will liaise and communicate with your customers directly in the relevant language in order to collect payments on your behalf, maintaining professional and detailed accounts
  • We have international bank accounts in a range of currencies which means we can receive funds from overseas customers with ease, speed and safety
  • For your peace of mind, you can also have your Invoice Finance facility provided confidentially and with Bad Debt Protection. Talk to Your Purchase Funding Experts today

Why choose us and our partners:

  • We can fund finished goods that you are going to sell straight on, as well as unfinished goods that you are going to use in your manufacturing processes
  • Our specialist team will put time into understanding your business and evaluating your supplier contracts
  • We evaluate each case for funding individually, meaning each Purchase Funding deal will be assessed on its own merits
  • We have expertise in funding purchase orders as well as issuing and managing Letters of Credit and Supplier Undertakings
  • We and our partners will fund goods that do not come into the UK, so they can be transported directly from your overseas supplier to your overseas customer
  • We can also offer invoice finance so that cash is released from your invoices
  • And all handled by one team enabling easy communication between you and a team

How it works:

  • Your customer sends you a Purchase Order for finished goods
  • You place an order with your supplier
  • You send the PO from your customer and the pro-forma invoice that you receive from your supplier to Global Asset Finance Limited
  • Global Asset Finance Limited and partners opens a Letter of Credit (if required) with your supplier, guaranteeing the manufacture of your goods
  • Your goods are manufactured to order and shipped, and your supplier sends you the relevant documents to confirm shipping
  • Global Asset Finance Limited and partners pay your supplier up to 100% of the purchase price once all relevant documents are received
  • You ship the goods to your customer
  • You invoice your customer and send a copy of the invoice to Global Asset Finance Limited for funding
  • Funds advanced against your customer invoice are used to pay off the Purchase Funding provided, and then Global Asset Finance Limited releases a proportion of the remaining funds to you
  • Global Asset Finance Limited liaises with your customer for payment of the invoice
  • Customer pays Global Asset Finance Limited and partners in full
  • Global Asset Finance Limited and partners pays you the remaining funds less our charges.

Managing cash flow effectively is vital to the success of any business.

Whether you’re dealing in the UK or overseas, you want your cash to work hard for you. Cash to help bring your business plans to life and to grab new opportunities.

We understand how frustrating it is when the working capital is locked away in your business and you have to watch crucial new business opportunities disappear or be delayed. It’s easy to find yourself in a catch-22 situation where you’ve secured a new business order, but the funds you need to fulfil it are tied up and you cannot access those funds until the order is delivered.

At Global Asset Finance Limited and Partners we want to help and have developed our Trade Services solutions to do just that. We can support businesses in the UK and overseas with all their importing needs, making your deals not only possible but profitable.

By taking advantage of our Trade Finance solutions, we can help make every sale possible. We can provide upfront funding against confirmed orders, open up letters of credit facilities on your behalf, and provide direct supplier payments or even a cash advance. When it comes to accessing the funds you need to drive your import business forward, Global Asset Finance Limited and Partners makes it easy.

Purchase Order Finance is funding advanced to a supplier secured against a confirmed Purchase Order.

To qualify for this type of funding, the Purchase Order will need to have come from a relatively well established and financially secure customer, as the finance company will want to make sure that the buyer is in a position to pay for the goods once they have been completed.

A common problem for young and growing businesses is that when they receive a potentially valuable order from a large organisation, they often find they don’t have the available cash resources to pay for the products to be produced. The problem will likely be worsened when the order is delivered and an invoice is raised as they may not be paid for another 60 or even 90 days!

Purchase Order Finance can help businesses address this funding gap by assisting with the financing of the transaction up until the time an invoice is raised. The level of funding will depend upon the make-up of the order and the strength of the company issuing the Purchase Order.

The company providing the Purchase Order finance will normally charge a transaction fee and interest on the monies advanced. These fees will need to be paid once the goods have been delivered and the invoice sent to the customer.

The fees are commonly repaid from an Invoice Finance facility.

The options are either a full ledger facility, where a 1-2 year agreement is put in place or a Invoice Finance facility where individual invoices can be funded on an as needed basis.

Making it happen:

  • You receive a confirmed order from a credit worthy customer
  • Global Asset Finance Limited and Partners advance up to 100% of the purchase price to pay your supplier
  • You place the order with your supplier for the finished goods
  • We pay your supplier or open up a letter of credit
  • You deliver the goods and invoice your customer, sending a copy of the invoice to Global Asset Finance Limited and Partners
  • We release up to 95% of the total invoice value (Subject to Credit & Risk Approval), retaining the original monies that were released to your supplier at the beginning of the transaction. We will then return the balance, less our fees to you
  • We will then chase and collect payment from your customer and return any profits to you

Flexible funding to help you grow:

In addition to the above we can also improve your business’ ongoing cash flow situation by providing an immediate and ongoing supply of cash against the value of your unpaid invoices.

Every time you raise an invoice we can release up to 85% of its value within 24 hours, so as your business grows so does the amount of funding made available to you. We can also provide a tailor made invoice collections service where we will manage your sales ledger and collect outstanding payments on your behalf – leaving you more time to concentrate on growing your business.

At Global Asset Finance Limited and Partners we also provide a range of support across a number of key areas including logistics, import licenses, customs compliance, VAT, Duty and freight costs, to name a few. By taking advantage of our Trade Services solutions we can help make every sale possible. You have the product, customer and sale and we provide the funds to make it happen.

The right choice for your business:

At Global Asset Finance Limited and Partners we want to do business and have earned a reputation for helping where other financial providers can’t. We’ll provide the level of expertise and tailored support that others often can’t match.

With our extensive experience and teams of dedicated specialists, we’ll work with you to develop the best solutions for your business.

You want simple, flexible solutions, quickly.

Click HERE to submit your details via our contact form and put the benefits of asset finance to work in your business.

Click HERE to complete an online application form. It's quick and easy to do!