Purchase Order Finance

Pay your suppliers on time, avoid delays & get your orders funded*

The purchase order finance option exists to enable you to take on larger than normal sized orders and provide funds when you’re in a cash flow squeeze. You get funds against confirmed orders, or on-going supply agreements.

Making Payments to your Suppliers

You can get funding up to 100% of the confirmed purchase cost to your supplier by paying them directly and taking ownership of the goods. The invoice payment is collected directly from your customer and you get paid the balance between the order value and the amount paid to your supplier, minus any fees and cost of money used, once payment has been received.

What do I need to get funded?


The products are pre-sold to a credit worthy customer/debtor


Non-consignment sale


Non-cancellable Purchase Order


Preferred that the P. O. be for finished goods only


Payment guarantees or assurances will be issued directly to the suppliers on your behalf

How does it work?

Funding available from AUD10,000-250,000


You receive a purchase order (PO) from your customer


PO is verified with your customer to check its validity


A letter of credit/telegraphic transfer is sent to your supplier and you drawdown on the purchase order finance


Your supplier then ships the completed goods to your buyer/customer


Your customer is then directed to pay for the goods


We collect payment and remit the balance to you

Purchase Order Financing Examples

Overseas Supplier to Australian Buyer

You are importing widgets from China. You do not need to handle the goods; they will be shipped directly to the customer, a large Australian retailer. The cost of the goods is $300,000 and you will sell them to the buyer for $500,000. Gross margins are 20% (after all importing costs). EquipFund/Lender opens a Letter of Credit to your supplier. When the goods are shipped your Chinese supplier will get paid. When the goods are landed in the Australia and shipped to the Australian customer/buyer, EquipFund/Lender will factor the receivable and pay the purchase order from the funds advanced.

Australian Supplier to Australian Buyer

You wholesale lighting products to Australian customers/buyers & your supplier is a local importer/reseller. You just received a large order however your debtors are slow paying their invoices, which has left you with a cash flow shortage. Your sales price to your buyer is $80,000 and your total purchase price from the local supplier is $60,000. EquipFund/Lender will assess the credit worthiness of the end buyer and purchase the goods for you from your supplier, give you 90 days get the goods delivered, then once the end buyer confirms delivery the invoice will be financed to pay the purchase order finance amount out. Once full payment has been made by the end customer the balance of $20,000 (your profit less financing cost) will be remitted back to your account.

Overseas Supplier to Australian Buyer with Logistics Management & FX Services

You are a fashion wholesaler that sells goods in Australia. You have been in business for 5 years and have a good Profit and Loss Statement and Balance Sheet. You just received a large order and are maxed out on credit from your suppliers in addition your debtors are slow paying. Your sales price to your customer is $100,000 and your total cost to produce the goods is $75,000. Your gross margin is 25%. EquipFund/Lender will organise payment via a letter of credit (also organising foreign exchange services) to your supplier & assist with managing the shipping and logistics, giving you freedom to focus on your daily operations.

Get started today, submit your order details:

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