Cash Flow Solutions

Purchase Order Funding & Invoice Discounting

Powerful financing strategies to manage cash flow at different stages of your business transaction cycle. Professional solutions designed for growing businesses.

🎯 The Critical Question

Understanding the difference comes down to one essential question:

Have you already delivered the goods/services?

This single question determines which financing solution will optimize your cash flow and enable business growth.

Professional Financing Solutions

1

Purchase Order (PO) Funding

Use this if: You have a confirmed order from a client, but you do not have the money to pay your suppliers to produce or acquire the goods needed to fulfill it.
📅 The Stage: Pre-delivery

How it works:

  1. You receive a large, confirmed Purchase Order from a creditworthy customer.
  2. You apply for PO Funding. The funder verifies the order and your ability to deliver.
  3. The funder pays your supplier directly so the goods can be manufactured or purchased.
  4. You deliver the goods to your customer and send them an invoice.
  5. Once your customer pays the invoice, the money goes to the funder (often into an escrow account), who deducts the loan amount plus fees and pays the remaining profit to you.

🚀 Key Advantage

It enables you to take on large, "game-changing" contracts that you would otherwise have to turn down due to a lack of working capital.

2

Invoice Discounting

Use this if: You have already delivered the goods or completed the service, you have issued an invoice, but you cannot afford to wait 30, 60, or 90 days for your client to pay you.
📅 The Stage: Post-delivery

How it works:

  1. You complete the work and send an invoice to your customer.
  2. You "discount" (or borrow against) that unpaid invoice with a financing company.
  3. The company gives you an immediate cash advance (typically 70%-90% of the invoice value).
  4. When your customer eventually pays the invoice, they pay you as normal. You then use those funds to settle the advance with the financing company, plus a service fee.

💰 Key Advantage

It improves liquidity immediately, allowing you to pay your own staff, rent, or other overheads without waiting for long client payment terms.

📊 Professional Comparison

Feature Purchase Order Funding Invoice Discounting
Timing Before goods are produced/delivered After goods/services are delivered
Purpose To cover supplier/production costs To unlock cash tied up in unpaid invoices
Who gets paid? Funder pays your supplier Funder pays you (the business)
Customer Knowledge Customer often involved in logistics Usually confidential (customer doesn't know)

Ready to Optimize Your Cash Flow?

Our financial experts can help you determine which solution is right for your business and guide you through the application process with professional precision.

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