PO Financing
Never turn down a big order because of cash flow
$25K – $10MFunding Range
Varies by transactionSpeed
Never turn down a big order because of cash flow
Purchase-order financing can pay a supplier against an eligible confirmed order from a commercial or government buyer. It is transaction-specific funding rather than unrestricted operating cash. Bay Street Lending helps assess buyer quality, supplier performance, margin, and repayment arrangements before matching a request to a suitable provider.
When a large order comes in and you don’t have the capital to cover supplier costs, PO financing may help cover eligible supplier costs when the transaction supports it.
Buyer credit is central, alongside supplier capability, order terms, margins, existing liens, and the full transaction. A strong buyer alone does not guarantee funding.
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.
Share buyer terms, supplier quote, landed costs, and the delivery schedule for transaction review.
After approval and documentation, the provider pays approved supplier costs under the agreed conditions.
Customer collections or an approved receivables facility repay the provider; remaining proceeds follow the agreed payment waterfall.
Ask for a transaction-specific written quote. Confirm the fee base, charging period, minimum charge, extensions, due-diligence costs, and any invoice-factoring charges after delivery. A periodic fee is not the same as a total transaction cost or an APR.
For illustration, a $150,000 funded supplier payment with an assumed fee of 2% per 30 days costs $3,000 per period, or $6,000 for two periods before other charges. A third period adds $3,000. These are hypothetical assumptions, not Bay Street pricing or a market range.
A confirmed order, credible supplier, creditworthy buyer, and sufficient margin after landed costs and financing are the starting points. Cancellation rights, inspection, returns, partial shipments, existing liens, and customer concentration can affect the decision. Manufacturing or assembly requires specialist review; speculative inventory and service-only contracts need different structures.
Identify whether the buyer pays the PO provider directly or an approved receivables facility repays it after delivery. Include every facility’s fees and reserves. Do not assume an invoice advance will cover the PO balance without checking both agreements.
For a worked landed-cost budget and delay scenario, see purchase-order financing for wholesalers. If work has already been delivered and invoiced, compare invoice factoring; for repeated operating draws, compare a business credit line.
Prepare the customer order and contract, supplier invoice, landed-cost breakdown, delivery timeline, buyer payment terms, recent financials, and existing financing details. Setup timing varies with verification and legal arrangements. Discuss the order before committing to a supplier based on an assumed funding date.
Bay Street Lending is a commercial finance broker. Requests start at $25,000. Available structures, cost, collateral, guarantees, and timing depend on the lender and the complete file; submitting an inquiry is not an approval.
No. Providers also review buyer credit, supplier capability, margins, delivery and acceptance terms, collateral, and repayment arrangements.
It commonly pays approved supplier costs directly. It is not an unrestricted cash advance for unrelated overhead.
Timing depends on buyer and supplier verification, transaction complexity, documentation, and any related receivables facility. Confirm the expected date for the complete file before making commitments.
There is no universal threshold. Calculate the margin after goods, freight, duties, insurance, financing, and possible delays, then apply the provider’s actual requirements.
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