PO Financing
Never turn down a big order because of cash flow
$10K – $10MFunding Range
15–30 daysSpeed
or
Never turn down a big order because of cash flow
Purchase order financing — also called PO financing or PO factoring — gives you the capital to pay your suppliers upfront when you land a large order but don’t have the cash to fulfill it. Instead of turning down the deal or scrambling for funds, a purchase order factoring company pays your supplier directly so you can deliver the goods, collect payment from your customer, and keep the profit. It’s built for product-based businesses that are growing faster than their cash flow can keep up with. Bay Street connects you with PO factoring companies and PO financing lenders who understand your margins and move fast. For a full breakdown of how the product works, costs, and when it beats other financing options, see our <a href="/lending-resources/purchase-order-financing-guide">purchase order financing guide</a>.
When a large order comes in and you don’t have the capital to cover supplier costs, PO financing bridges that gap so you never leave money on the table.
Approval is driven by the creditworthiness of your end customer — not your balance sheet. If you have a solid buyer, you can likely get funded.
The financing company pays your supplier on your behalf — you never touch the money. This reduces risk and speeds up the process for everyone involved.
Fulfill a large retail or wholesale order, Cover raw material costs for a new contract, Scale production without draining cash reserves, Accept government or enterprise purchase orders, and Bridge the gap between order and payment.
Don’t meet every requirement? Apply anyway — we evaluate the full picture.
Get an instant estimate, talk to a specialist, or jump straight to the application. No credit pull, no obligation — all three are free.
Share the PO, your supplier details, and your customer info. We evaluate the deal based on the strength of your end buyer.
Once approved, the financing company pays your supplier directly so production can begin immediately.
You deliver the goods to your customer. When your customer pays, the financing company takes their fee and you keep the profit.
Yes — “PO factoring” and “purchase order financing” refer to the same product. Some lenders and brokers prefer one term over the other, but functionally they describe a single arrangement: a third party pays your supplier upfront so you can fulfill a confirmed customer purchase order. The fee structure, approval criteria, and process are identical regardless of which term you search for.
Invoice factoring advances you money on invoices you’ve already sent (after delivery). PO financing (also called PO factoring) funds you before delivery — it pays your supplier so you can fulfill the order in the first place. Many businesses use both together: PO financing covers production, then invoice factoring covers the gap until the buyer pays.
Most PO lenders require gross margins of at least 20% on the order. The financing fee comes out of your margin, so the deal needs enough spread to make sense for everyone.
PO financing is designed for product-based transactions where physical goods are being manufactured, purchased, and delivered. Pure service contracts typically don’t qualify, but hybrid deals (products + installation) may.
Most PO financing deals close in 3–7 business days once documentation is submitted. Repeat transactions with the same buyer can fund even faster.
One application, no credit impact, and a dedicated specialist to walk you through your options. See what you qualify for in minutes.