Spokane, WA -- (SBWIRE) -- 07/24/2013 -- Universal Funding, a leading account receivables financing company, recently announced purchase order financing as an additional option for companies seeking commercial lending.
Purchase order financing is a short term financing method used to cover the cost of manufacturing or purchasing goods that have been presold through a purchase order, hence the term “purchase order financing”.
There are actually two kinds of purchase order financing; Funding Finished Goods and Funding Non-Finished Goods.
Funding Finished Goods
This type of PO financing refers to the sales of products that are never touched by a wholesaling company. An example of this would be a wholesaler who receives a large order from a department store. After receiving the purchase order, the wholesaler places the order with the manufacturer. Once filled, the order is shipped directly from the manufacturer to the department store, never touching the wholesaler.
Funding Non-Finished Goods
This type of PO financing refers to sale of a product where a company takes possession of the components and transforms them into the final product. This could apply to a manufacturing plant, which transforms raw materials into a product. It would also apply to a business that purchases containers of office supply furniture from China, assembles the pieces here in the States before selling them to another company. Funding non-finished goods through PO financing is harder & more costly than funding finished goods, as there are inherently more risks that go into the equation.
Universal Funding is offering funding for both finished goods and non-finished goods.
About Universal Funding
Since 1998, Universal Funding Corporation has provided clients in a variety of industries including oilfield & energy, trucking & transportation, and staffing, printing, business service providers and manufacturing with personalized factoring receivables and factoring invoices services. The factoring company is based in Spokane, Washington and employs 24 people.
Universal Funding Corporation
Heather Burford, Marketing
16201 East Indiana Avenue, Suite 2600
Spokane, WA 99216