How much does purchase order financing cost?

PO financing fees typically range from 1.5% to 6% per 30-day period, depending on the lender, transaction risk and how long the order takes to fulfill. When converted to an APR, costs often exceed 20%, making PO financing more expensive than traditional loans but faster and easier to qualify for.

Can startups get purchase order financing?

Yes. Most PO financing companies base approval primarily on your customer's creditworthiness rather than your business history, which makes it one of the more accessible financing options for startups selling to large or creditworthy buyers.

What's the difference between purchase order financing and invoice factoring?

PO financing is used before delivery to pay suppliers so goods can be produced and shipped. Invoice factoring is used after delivery and converts unpaid invoices into immediate cash. Many PO financing arrangements transition to invoice factoring once goods are delivered and an invoice is issued.