With a loan for purchase orders, there is a daily rate based on funds deployed, with no long-term contract. When your business receives a large order but lacks the cash required to fill the contract, a PO lender can investigate the credit history of your customer—not the history of your business—in order to determine if you qualify for a PO loan.
If your customer is a viable entity and the transaction is sound, approval for a PO loan is likely. Then, when the contract is filled and the lender is paid, the remaining profits from the purchase order invoice benefit your business. It’s that simple!