Purchase Order Finance is a form of transaction-linked working capital support that may help eligible businesses fulfil confirmed purchase orders when additional funds are required for procurement, production or related operating requirements.
A business may receive a purchase order from a customer but still need working capital to procure materials, arrange production, manage inventory or complete the order before receiving customer payment.
KratuFin helps businesses understand their requirement and explore whether Purchase Order Finance may be relevant based on the transaction, business profile, documentation and applicable eligibility criteria.
Suitable financing may help eligible businesses bridge the funding requirement between receiving a purchase order and completing the underlying transaction.
Discuss Your RequirementPurchase Order Finance is generally connected to an underlying commercial transaction. The exact structure depends on the business, order and financing institution.
A business receives an eligible purchase order from its customer.
Funds may be required for materials, inventory, production or supplier-related commitments.
The business completes and supplies the underlying order according to the agreed transaction terms.
Customer settlement follows the applicable commercial and financing arrangement.
Depending on the transaction and eligibility, appropriate financing may help businesses execute confirmed orders without placing excessive pressure on existing working capital.
Financing may help eligible businesses arrange materials, inventory or supplier requirements needed to fulfil confirmed orders.
Appropriate funding may help manage the cash flow requirement that arises before customer payment.
Suitable working capital support may provide businesses with additional flexibility when handling larger or multiple orders.
Businesses may use suitable working capital arrangements to support production and order fulfilment requirements.
Access to appropriate working capital may help businesses pursue additional order opportunities where financially suitable.
Financing may help bridge the period between order confirmation, fulfilment and customer settlement.
Purchase Order Finance may be relevant for businesses that receive identifiable customer orders and require working capital to fulfil those orders.
The availability and suitability of financing depends on the purchase order, customer relationship, business profile, financial position, documentation and the applicable criteria of the financing institution.
Businesses with identifiable purchase orders from established customers.
Businesses requiring funds for procurement, inventory or production before fulfilment.
Businesses where working capital needs increase with confirmed customer orders.
Businesses looking to manage funding gaps during the order-to-payment cycle.
We begin by understanding the underlying order and business requirement before exploring applicable financing possibilities.
Understand the purchase order, customer, transaction and funding requirement.
Consider the business profile, documentation, transaction and applicable criteria.
Explore financing possibilities that may be relevant to the underlying requirement.
Move forward with the applicable institution's assessment and approval process.
Share your requirement with KratuFin and explore whether Purchase Order Finance may be relevant to your business.
Purchase Order Finance is subject to applicable eligibility criteria, documentation, purchase order verification, transaction structure, credit assessment and terms of the respective financing institution. Availability, pricing, tenure and approval may vary based on the applicant, transaction and other applicable factors.