Points To Consider When Choosing a Partner in Purchase Order Finance

Sunday, May 1, 2011

Points To Consider When Choosing a Partner in Purchase Order Finance


As a factor, asset-based lender or bank you understand the important role a qualified purchase order finance company can play in providing added value to enhance your relationship with client companies. 

There are a few experienced purchase order financiers but some offer the service without understanding the risks or capital needs.   How can you be sure to build a relationship with the right p.o. finance company? You need a p.o. finance company that is going to both enhance your relationship with your client and offer the best solution for them.  Please consider these important points when choosing a partner in purchase order finance.

How Long Have They Been in Business?

In recent times, newcomers have set their sights on purchase order finance or have reentered purchase order finance after securing new financing. These companies have little specific experience in the field of p.o. finance and don’t have the depth of knowledge required to structure deals that will be of greatest benefit for both you as the senior lender and your client companies.

King Trade Capital has provided the widest selection of purchase order finance solutions available in the market for more than 17 years.


Whose Money Are They Using?

In some cases, those offering purchase order finance have outside investors with varied agendas which can make receiving the needed funding hit or miss.  Not to mention a lengthy approval process of selling the outside money source on the purchase order financing.  On the other end of the spectrum banks that offer p.o. finance, as one of their many finance options, encounter red tape that slows or even halts the process of getting your deal done.

King Trade Capital is in the business of providing purchase order finance and has its own capital, allowing us to make internal decisions quickly, providing the funds when they are required.

How Much Money Do They Have Available?

Be on the lookout for undercapitalized p.o. finance companies.  Many start ups or restarts will promise you the moon, but then when it comes time to back it up with cash they just don’t have it.  Be sure to ask if they actually have access to the amount that is needed for your deal or if they have to request it from someone else.

King Trade Capital is the largest independent purchase order finance company in the US and internally makes all its funding decisions.

What about Flexibility?

We all know that no two companies are the same, especially when it is a company in need of alternative capital in order to grow.  Because King Trade Capital is independent and has its own capital dedicated to purchase order financing, we are able to be flexible with deal structure in order to offer a solution to get a deal done.

How Much Experience?

Do they have years of experience in p.o. finance? Is purchase order financing simply a lead into other financing?  Will they finance manufacturers?  Do they have bankruptcy and turnaround experience?

King Trade Capital has been in business longer than any other independent purchase order finance company in the country and can bridge almost every capital need in order to help fulfill purchase orders.

What is Their Response Time?

When a business opportunity presents itself, the time to act is NOW.  However, with some purchase order finance providers by the time you get a decision, the opportunity may have passed by.

King Trade Capital is known for fast response.

King Trade Capital sets the standard in purchase order finance.  As the largest independent purchase order finance company in the country, King Trade Capital has the most experience, available funding and flexibility to complete your deal in the quickest time possible.  Your client company will have their decision and their funding quickly, adding value and enhancing your relationship with them.