Purchase Order Finance
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, labour, 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 (POF 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 fulfilment of certain conditions backed by either a Bank or Cera Finance House. 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.
This is a commitment to pay the supplier by Cera Finance House from the availability generated on the funding of the receivables when generated relating to the purchase transaction.