Purchase Order (PO) financing and Inventory Financing often go hand-in-hand.  This means as your company receives a purchase order, the financing firm will fund the purchase of the inventory you require in order to fulfil the order (raw materials, work in progress, finished goods).  Really, it’s quite that simple however, the financing of this type of business practice requires some work and proof that the lender is going to get paid including their markup.  But, you can also procure inventory financing for your existing inventory because your business may be cash based sales and not necessarily earned on receivables – paid later.  Financing for existing inventory’s requires specialized financing firms understanding your business category ensuring all the controls are in place that mitigates their risk.  There are some ratio analysis that will be performed on your inventory, mark-ups shown, inventory turn overs measured, encumbrances dealt with and other inventory analysis that determine how much of your inventory can be financed now.  When you need to optimize your cash flow because you have invested in your inventory to ensure sales then I can advise on the right inventory financing maximizing your cash needs.