What is Purchase Order Finance?
- Purchase order financing is an excellent solution for a business to obtain quick, short-term capital. Meridian PO Finance’s purchase order financing solutions cover the supplier’s –that of Meridian’s client’s – expenses associated with a specific purchase order. For example, a business obtains a valid purchase order ready to fulfill, but not the funds to pay its suppliers upfront. By utilizing Meridian’s PO financing, our client can use capital provided by Meridian to fulfill the purchase order and generate sales that exceed their current financial capabilities. Purchase order financing frees up your cash for critical business expenses and overhead, and most importantly allows your business to grow outside of its current cash flow constraints.
Will I be approved for purchase order financing?
- Meridian PO Finance understands the current economic environment and its effect on individual’s credit standing and available credit. Meridian bases pre-approval on the momentum of the business, viable transactions, good standing relationships with customers, suppliers and vendors, rather than on your personal credit history. Personal credit is a minor variable in the approval process.
Is Meridian brokering my deal?
- No, Meridian PO Finance is a direct purchase order lender. Our firm deploys our capital into your deal. If you need a Factor or ABL relationship, we can certainly provide you with a strategic referral or work with your current provider.
My typical transactions last longer than 30 days but less than 60 days, is this acceptable?
- Yes, most financed transactions are outstanding 45 days or less. If the time frame is longer than our standard, we can provide an avenue to factor the invoice.
I currently use a Accounts Receivable company to factor my invoices, would I still be able to use them?
- Yes, this is possible and in many cases preferred. Many of Meridian’s clients utilize multiple financial institutions. It’s quite simple, Meridian would provide you for the cost of goods, your factoring company would factor your customers invoice and pay to Meridian their designated amount due directly. This is made possible by signing an Inter Creditor Agreement (ICA) that allows both parties to work together on the same transactions.
Is Purchase Order Finance the same as Factoring?
- No, this would not be considered a factoring relationship. We provide 100% of finances needed for the the Cost of Goods in the transition. Essentially Meridian is creating a receivable or invoice.
How much does this cost me to become a partner with Meridian PO Finance?
- It is at no cost to you to complete and submit a Pre-Approval application for thorough evaluation to begin working with Meridian.
What are Meridian’s Minimum and Maximum funding amounts?
- Minimum- Meridian’s minimum purchase order we will provide funding for is $10,000.00 We are the lowest of our competitors and truly do work with small businesses.
- Maximum- At Meridian, we do not place a cap on the amount of funding available to our clients. There is no maximum, we ask that the transaction be creditable, fulfilled in a timely manner, well documented and marginal (20% or higher).
Do I have to qualify for particular amount of Funding?
- No need to qualify, you can use Meridian PO Finance for any transaction big or small. We are offing you the opportunity to grow your business using Meridian as your capital partner to fulfill your purchase order needs.
I have a 5-year contract with a government entity, could I still work with Meridian?
- Yes, we understand that long-term contracts are common for product fulfillment to your customer (aka. Work In Progress). As long as the orders are done in increments and you receive payment within 30-60 days of each shipment to your customer, Meridian PO Finance may be able to fulfill your needs for funding.
What is Meridian’s fees for PO financing?
- Meridian’s fee for deployed capital is a daily rate, which ultimately gives you control of the cost per your opportunity. Meridian’s finance specialist can work with your suppliers, vendors or manufactures to structure your transaction to the least days possible allowing you to benefits from a lower cost of funds.
- An application fee will apply to each opportunity that Meridian PO Finance funds. This process includes thorough verification of purchase orders and credit verification on both your customer and supplier. The application fee is collected at the end of the transaction, no upfront fees are required.
- An administration fee is required once a month for accounting purposes which includes Invoice and Statement creation. Regardless of how many opportunities are submitted, approved and funded per month, this fee is only applied once and collected at the end of the transaction, no upfront fees are required.
I have multiple suppliers I use for each transaction, is Meridian capable of providing separate wires for all of my suppliers?
- Yes, we have issued separate wires or Letters of Credit to more than one supplier for a certain opportunity. Provided that all materials are for the purpose of the transaction and there is one end user – customer – then yes there is no problem doing this transaction.