Finance Solution # 68 : P O / Contract Financing Purchase Order Financing

OVERVIEW – Information on purchase order financing in Canada. The ingenius role played by P O finance companies in growing sales revenues when traditional financing can’t be achieved

7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line
= 905 302 4171

= 905 829 2653


Purchase order financing in Canada
. We’ve labeled it finance solution # 68. While there probably aren’t 67 other different unique financing solutions ahead of it , ( although there is more than you think ) it’s safe to say it’s probably the least well known, or thought of finance solution in CANADIAN BUSINESS FINANCING .

Let’s examine how P O FINANCE COMPANIES market and offer the… dare we say it the ‘ genius ‘ of purchase order finance. Let’s dig in.

Many businesses in Canada lose out or are forced to step back when it comes to taking on contracts or orders when they realize they don’t have the financial resources to successfully fulfill client needs. It might be a single order or a large ongoing contract.

Enter the P O financier. But why then is this a solid solution for growing sales /revenue in a big manner? The answers are perhaps not well known, but simple:

Purchase order financing is not debt

Suppliers/vendors are very comfortable with the concept as they are assured payment

Properly constructed no transaction is really too large when it comes to opportunities that involve legitimate vendors and clients

The added expertise of the Purchase order financier often adds value to the overall transaction

Whether a firm is a start up of established qualifications are still the same to benefit from this unique financing – a verifiable non cancellable order, a legitimate client, and your ability to demonstrate a solid profit margins on the transaction. (P O financing is in fact ‘ genius ‘ financing – but its one of the most expensive forms of business finance solutions)

So how exactly does PO / Contract finance work? What are some of the key mechanics? It starts with understanding that sales revenues are generated from inventory and receivables. Your suppliers for orders or contracts are in effect guaranteed payment for products shipped to your firm under the P O finance facility. The alternative for paying suppliers in advance is to have established bank credit lines in place, and for a variety of reasons that often is impossible for many companies.

So the essence of offerings from P O finance companies is that your firm has the ability to fulfill an order, your client must have the ability to pay for it, and your vendor must be an established firm as independently verified by the finance company.

If your firm wants to utilize or better understand finance solution # 68 – Purchase Order Finance then consider seeking out a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can assist you in fulfilling sales and contracts traditionally outside of your firms ability to deliver . It’s ‘ genius’.

7 Park Avenue Financial :
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :



7 Park Avenue Financial
Canadian Business Financing