2 hrs

How long it takes to see if we can help you

£107,192,350

How much we have funded to small businesses so far

A UK-based Trade Association representing an industry supplying much needed liquidity to UK and Irish businesses. Trustpilot is a review community that builds trust and transparency between consumers and businesses.

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Who it’s for

Purchase order finance is designed for businesses who buy finished goods, materials or components from suppliers for onward sale to confirmed customers.  PO finance is designed to help businesses to pay suppliers who might limit credit or even refuse it altogether. In this way precious cash flow is not tied up in stock or WIP (Work in Progress) and businesses can accept new orders without worrying how they will pay for the items they need to fulfil the contract.

What it is

Once you have received an order from your customer you simply place your order on your supplier as you normally would.  On receipt of their pro-forma invoice, we will pay up to 90% of the suppliers invoice so that you can arrange prompt delivery or collection.  This could allow you to take advantage of prompt settlement discounts, bulk buying discounts or other, one-off offers that your supplier may be offering.  When the finished goods are shipped, you invoice in the normal way but assign the debt to us.  We are repaid when the customer settles his account.  You can do this with one, some or all of your clients and suppliers.  There is no long term commitment and you are free to use the facility as much or as little as you require.

How it works

  1. You receive an order from your customer
  2. You identify a suitable supplier(s)
  3. You notify us that you wish to use your purchase order finance facility so that we can approve your supplier for payment
  4. You place the necessary orders consigning the goods to us and send us your deposit
  5. Depending on the agreed terms, we pay the supplier in full for the goods
  6. The goods are shipped to the customer, a suitable warehouse or a manufacturing facility where they are processed
  7. As soon as the finished order is delivered to the end customer, you raise the invoice which is assigned to us.
  8. We factor the invoice using some of the proceeds to settle the purchase order loan.
  9. Depending on your margin and the terms we have agreed we may at that point make an interim advance to you usually the refund of your deposit
  10. When your customer settles his invoice, we deduct our fees and rebate the remainder to you.

Is this solution right for your business?

We also provide  Selective Invoice Discounting which allows you to factor one, some or all of your invoices with no long term commitment and no minimum fee, Export finance if you’re selling overseas, Stock finance  if you are a larger business needing a revolving stock finance facility and business loans for certain qualifying purposes.

 

 

Call now to discuss which solution is right for the way your business works.
020 8203 6500

Our fees

The fee is shown as a percentage of the invoice total but it’s calculated using a number of factors:

  • the amount paid to the Supplier
  • the number of days from draw down until your client settles

Top Tip

Check with suppliers to see if they will offer early settlement or prompt payment discounts.

We’ve made it even simpler

24/7 online platform

With our 24/7 online platform, you manage the whole process.

Bad debt protection

With our bad debt protection as standard, you’re covered even if your client becomes insolvent.

People we’ve helped

Find out why and how Jay grew his car spares business with the help of Working Capital Partners.

Read more

Talk to an expert

Registered and rated by:

A UK-based Trade Association representing an industry supplying much needed liquidity to UK and Irish businesses. Trustpilot is a review community that builds trust and transparency between consumers and businesses.