Do you have purchase orders from credit-worthy customers, but lack the funds to pay for the goods to fill those orders? Is your bank unwilling to fund inventory in transit?
Purchase Order Finance, also known as trade finance, is a unique credit accommodation that allows you to purchase inventory without drawing on your bank line of credit. A purchase order finance company will advance up to 100% of your supplier PO against pre-purchased inventory, including the cost of freight and duty.
The Franklin Capital Purchase Order Finance Program provides Letters of Credit or cash against documents to foreign and domestic manufacturers for the cost of pre-sold inventory.
REDUCE YOUR RISK IN THE FACE OF GROWING GLOBALIZATION
Franklin Capital’s management team structures its Purchase Order Finance Program to help overcome the legal and financial barriers associated with international trade.
Franklin Capital expedites the issuance of Letters of Credit that most foreign manufacturers (and some domestic manufacturers) require before beginning production. Prior to shipment, Franklin Capital arranges for the inspection of goods anywhere in the world. This service ensures product quality and full compliance with your customer’s Purchase Order.
ADVANTAGES THAT PURCHASE ORDER AND TRADE FINANCE ADDS TO YOUR BANK FINANCING
Our Purchase Order and Trade Finance programs are an additional source of capital that augments traditional lending. We offer a supplement to conventional debt, which enables companies in need of credit to significantly increase their borrowing power.
How Franklin Capital’s Purchase Order and Trade Finance Programs Augment Bank Financing:
- As opposed to banks, we are willing to provide funds for inventory in transit.
- You can purchase inventory quickly, without drawing on your bank line of credit, to fulfill orders and achieve earnings that would not otherwise be possible.
- Unlike banks, we do not block your bank lines for the amount of the issued Letter of Credit.
- You can fully utilize your bank lines and still provide your manufacturers with the required Letters of Credit.
HOW PURCHASE ORDER FINANCING WORKS
1
Customer
Issues Purchase Order to Client.
2
Client
Orders product from Supplier and makes a purchase order request to Franklin, which is then confirmed.
3
Supplier
Produces products ready to ship once inspection is completed.
4
Supplier
Ships product and draws on the Letter of Credit, wire or payment against documents.
5
Franklin
Is repaid from Accounts Receivable proceeds.
WHAT CAN BE FINANCED
Pre-sold finished goods
- Shipped directly to the client’s customer.
- Shipped to a third-party warehouse.
- For certain transactions, shipped to a client’s warehouse.
Production finance/work-in-process
- With acceptable supplier agreement regarding terms of payment.
CANDIDATES & REQUIREMENTS
Purchase Order Financing candidates are fast growing:
- Importers.
- Wholesalers.
- Distributors.
- Manufacturers.
Requirements to get started:
- Current aging of accounts receivable.
- Current aging of accounts payable.
- Recent financial statements.
- Copies of customer’s purchase orders.
- A short summary of transactions.
- Copies of vendor agreements.
In Our Clients Words
Find out how Franklin Capital’s Purchase Order and Trade Finance programs can help you grow your business!
For more information or to get started, call today at (847) 579-4780, schedule a call with one of our finance experts or request a quote. We will work with you to find the right financial solution to get you the working capital you need to grow your business.