Step 1
You receive an order to create and deliver goods from a retail store.Step 2
Purchase Order Financing pays the supplier to produce the goods.Step 3
The goods are delivered. You invoice the retail store and send a copy of the invoice to the factor.Step 4
80%+ of the invoice is liquidated. The PO gets paid, you net the difference. While we wait for the retail store to pay.Step 5
The retail store pays their invoice. The factoring company releases the remaining 20% less their flat fee.