Do you have Purchase Orders, but lack the funds to pay for the goods to fill those orders? Is your bank unwilling to fund inventory in transit? No upfront fees and very low rates!
MFDC GROUP 's Purchase Order Finance Program allows you to purchase inventory from your vendors without drawing on your line of credit.
MFDC GROUP's Purchase Order Finance Program, alternatively known as trade finance, provides Letters of Credit to foreign or domestic manufacturers for the cost of pre-sold inventory. Most foreign and some domestic manufacturers require Letters of Credit before beginning production or shipment of finished products. MFDC can arrange these Letters of Credit through their Purchase Order Finance Program. Prior to shipment, we will arrange for the inspection of finished products anywhere in the world. This service ensures product quality and full compliance with customers' purchase orders. Our typical clients are:
Importers
Wholesalers
Distributors
Manufacturers
Required information:
Current financial statements
Accounts receivable aging
Accounts payable aging
Copies of customer Purchase Orders
Copies of vendor agreement
Description of transaction
•Transactions between $100,000 and $10 million–$50,000 minimum considered for multiple transactions •Firm purchase orders from creditworthy customers •Client has minimum 20% profit margin on all deals What is it? Large orders, seasonal sales and business expansion can place real pressure on your cash flow. Some suppliers want you to pay cash on delivery while your customer wants to pay you net 30 to 60 days. At the same time, labor, packaging and shipping costs all have to be met. While the opportunities for future sales and growth may be great, these conditions constrict the life blood of your business - your cash flow.
Our purchase order finance service (PO Finance) exists to make your deals not only possible, but profitable. We can provide funds against confirmed orders, or one-off sales, to individual customers. There are 3 different types of facility, linked to a receivables funding facility, that you could make use of dependent on your situation:
Making Direct Payments to your Supplier We can advance up to 100% of the confirmed purchase cost to your supplier by paying them directly and taking ownership of the goods. We collect the invoice payment from your customer and pay you the balance between the order value and the amount paid to your supplier, minus our fees and cost of money used, once payment has been received.
Issuing a Letter of Credit This is a commitment to pay the supplier on their fulfillment of certain conditions backed by either a Bank or the Lender. The conditions are normally related to the provision of correct documentation. These Letter of Credits are governed by the regulations of the International Chamber of Commerce.
Supplier Guarantee This is a commitment to pay the supplier by the Lender from the availability generated on the funding of the receivables when generated relating to the purchase transaction.
WE ALSO OFFER FAST WORKING CAPITAL SOLUTIONS, ANY $ AMOUNT ASSET BASED LENDING AND FAST LINES OF CREDIT UP TO $200K!