The Real Problem
The Biggest Order of Your Life Just Landed — and You Can't Fill It.
The biggest order of your life just landed — and you can't fill it, because paying your supplier would take more cash than you have in the bank.
What good is the order that would change your business if filling it means paying your supplier more than you have in the bank — so you turn it down and the customer hands the next one to a competitor?
What you actually need isn't a bigger balance sheet — it's the order funded: the facility pays your supplier directly against the confirmed contract, so you fulfill it without fronting a dollar.
Bobby’s Take
I've watched operators pass on the order that would've changed everything, because they couldn't front the inventory. The contract can do that work — the customer's credit funds the supplier, and you grow into the order instead of turning it down.
Bobby Friel, Founder, Basecamp Funding
Capital Stacking in Action
How a $2.7M PO Facility Anchored a $4M Structure for a $23M Lighting-Products Supplier
A commercial lighting and electrical-products supplier — $23M revenue — won a confirmed $3.3M retrofit contract from a national property manager, but couldn't front the manufacturer payment. The order funded the supplier; A/R took over once the job was invoiced.
The supplier filled an order it would have had to turn down, the customer's credit — not the supplier's balance sheet — carried the underwriting, and converting to A/R at invoicing kept the blended cost down.
The $4M structure, one application
One application · one specialist desk
Funded Scenarios
Orders We've Financed for Operators Like You
Representative scenarios — illustrative figures, not specific client transactions.
What an operator said
“We almost passed on the biggest order we'd ever been offered, because filling it meant paying our supplier more than we had in the bank. The specialist desk looked at the contract and who'd signed it — not our balance sheet — and paid the supplier directly. We delivered, we invoiced, and the whole thing rolled into a cheaper receivable line the day we billed. We grew into the order instead of turning it down.”
Operator · $20M products distributor
Start Here
See What Your File Qualifies For — in About 60 Seconds
Move the slider to your loan amount, tell us a little about the business, and the specialist desk reads your file. No application fee. No credit ding to look. You get real term sheets from real lenders — not a generic soft-pull review.
Soft-pull only · 4 months bank statements · Real term sheets, not estimates
How Much to Pay Your Supplier?
How much do you need to pay your supplier to fill the order?
Estimated Supplier Funding
Paid directly to your supplier. Converts to cheaper A/R the moment you invoice.
Your actual terms come from real term sheets.
How It Works
How a PO Facility Is Actually Structured
PO financing pays your supplier directly against a confirmed purchase order — often a high percentage, up to ~100% of supplier cost — so you can fulfill an order bigger than your balance sheet. It's underwritten on the order and your customer's credit, and it's designed to convert to cheaper A/R the moment you invoice. Here's the real mechanic at this level.
For orders past a single transaction's ceiling, the specialist desk stacks PO with A/R and working capital — see commercial financing.
The Cost of Turning It Down
Turn That Order Down and It Doesn't Just Cost You the Margin
Fund the supplier and fill the order — the contract carries the underwriting, not your balance sheet.
Structure Your Capital Plan →Compare the Options
PO Financing vs the Alternatives
| PO Financing | Bank Line of Credit | A/R Financing | Merchant Cash Advance | |
|---|---|---|---|---|
| When it funds | Before you fulfill — pays your supplier | Anytime, if you qualify | After you invoice | Anytime, at a cost |
| Secured by | The confirmed order | Your credit + collateral | The receivable | Future card / deposits |
| Underwriting basis | The PO + customer + supplier | Your balance sheet + tax returns | Your customers' credit | Deposit volume |
| Best for | An order bigger than your cash | Bank-fit borrowers who can wait | Bridging the resulting invoice | Almost never |
| Pairs with | Hands off to A/R once invoiced | — | Follows PO in the cycle | — |
Bobby’s Take
“Most operators turn down the order that would've changed their business, because they can't front the inventory. That's backwards. You don't need a bigger balance sheet — you need the order funded. PO financing pays your supplier so you can deliver, and the contract itself does the talking. The one rule: it's priced for a single big order, so the minute you invoice, convert it to A/R and stop paying the PO rate. Fulfill on the order, get paid on the receivable — that's the whole move.”
Bobby Friel · Founder, Basecamp Funding · 20+ years in banking and finance
Straight Answers
The Straight Answers Operators Ask For
My balance sheet is too small for a contract this size.
That's the point — PO financing underwrites the confirmed order and your customer's credit, not your balance sheet, so you can take an order bigger than your cash.
Isn't PO financing expensive?
It's priced for a single high-margin order you couldn't fill otherwise — and the smart move is to roll it into cheaper A/R the moment you invoice, so you don't carry the PO cost through to payment.
Will the lender actually pay my supplier?
Yes — the facility pays your supplier directly so production starts, and you never front the inventory out of your own cash.
What if my customer doesn't pay?
The facility underwrites your customer's credit before it funds, and the confirmed order — not a personal guarantee — secures it.
My credit isn't strong.
On a PO, the lender reads the contract and your customer's credit, not your FICO — challenged owner credit is workable when the order and the buyer are solid.
My order is bigger than $5M.
A single transaction runs to $5M+, and the specialist desk stacks PO with A/R and working capital to reach $20M+ on one structure.
Take the order now, and optimize later.
Convert the PO to cheaper A/R the moment you invoice, and terms improve as the facility seasons. You don't wait for perfect to say yes to the order you'd otherwise turn down.
The Process
How a PO Facility Comes Together
Submit your file and the order.
Signed application + 4 months bank statements + the confirmed PO/contract + your supplier details. No application fee, soft-pull only.
A specialist reads the contract.
An advisor underwrites the order, your customer's credit, and your supplier's reliability — the contract is the story, not your balance sheet.
Real term sheets come back.
PO lenders return fundable offers priced to the transaction — what they'll advance to your supplier, on what cycle.
The supplier gets paid and you fulfill.
The facility pays your supplier directly so production and delivery start; you never front the inventory.
Convert to A/R and anchor the plan.
The moment you invoice, the structure hands off to cheaper A/R — and PO becomes the contract-cycle layer beneath A/R and working capital as the structure grows toward $20M+.
Self-Qualify
Who PO Financing Fits — and Who It Doesn't
Deal-Breakers
What Kills a PO Financing Application
Straight talk on what stops a PO facility before it starts — so you fix it before you submit.
By Industry
PO Financing by Industry
If you've won a confirmed order bigger than your cash, the contract can secure the financing — your customer's credit does the work. Explore the fit for yours.
Manufacturing
Fund the steel and components a confirmed OEM order needs — the facility pays suppliers so the production run starts, then converts to A/R once invoiced.
Distribution & Wholesale
Fill an enterprise rollout bigger than your cash — PO financing covers supplier cost so you can ship every account at once instead of declining the order.
Trucking & Logistics
Fund the fulfillment side of a confirmed supply contract — pay vendors and move the goods, then hand the receivable to cheaper A/R once delivered.
Automotive & Parts
Pay parts and component suppliers against a confirmed reseller or fleet order — the order secures it, so you fill volume without fronting inventory.
Construction & Heavy Industrial
Fund materials and vendor payments against a confirmed supply order — the contract carries the underwriting, not your balance sheet.
Healthcare
Pay device and supply vendors against a confirmed facility or system order — fulfill the contract first, then convert to A/R on the payer.
FAQs
PO Financing — Questions Operators Actually Ask
PO financing funds you before you fulfill an order: when you've won a confirmed purchase order you can't pay your supplier for out of cash, the facility pays your supplier directly — often up to ~100% of supplier cost — so you can produce and deliver. It's secured by the confirmed order and underwritten on your customer's credit and your supplier's reliability, not your balance sheet. Once you deliver and invoice, it converts to cheaper A/R financing.
Timing. PO financing funds before fulfillment — it pays your supplier so you can complete an order you can't yet afford. A/R financing funds after you invoice — it advances against the receivable you've already earned. They run in sequence: PO fills the order, then A/R bridges the resulting invoice at a lower cost. If you've already delivered and billed, you need A/R financing; if you can't fund the order in the first place, you need PO financing.
Yes. The facility pays your supplier or factory directly against the confirmed order — often a high percentage, up to ~100% of supplier cost — so production starts and you never front the inventory out of your own pocket.
The confirmed order and your customer's credit drive the approval, not your balance sheet. The lender reads the contract, the buyer, and your supplier's reliability — so challenged owner credit is workable when the order and the customer are solid.
A high percentage of the supplier cost, often up to ~100% on a strong order. The facility is sized to what it takes to pay your supplier and fulfill the order, not to your existing cash position.
PO financing is priced per transaction for a single high-value order — it's not cheap capital, it's the capital that lets you fill an order you'd otherwise turn down. The way you keep the cost down: convert to cheaper A/R the moment you invoice. You carry the PO advance only through fulfillment, then the receivable line takes over at a lower rate. Fulfill on the order, get paid on the receivable.
Yes. Federal purchase orders are assignable under the Federal Assignment of Claims Act, and the government's credit is pristine — a strong fit for PO financing and the A/R follow-on. Government primes and subcontractors use it to fund mobilization and fulfillment while federal payment cycles run.
A confirmed purchase order or contract (not a verbal or likely one), a creditworthy customer, a reliable supplier, physical goods, and a healthy gross margin — roughly 20%+ — so the order can absorb the transaction cost. Service-only work with no supplier cost to pay isn't a fit.
A signed application, 4 months of business bank statements, the confirmed purchase order or contract, and your supplier details. Soft-pull only, no application fee. The order and supplier details let the advisor underwrite the contract and structure the supplier payment.
The Operator's Guide
The Operator's Guide to Purchase Order Financing
You don't need a bigger balance sheet — you need the order funded
The biggest order of your life lands, and you can't fill it — because paying your supplier would take more cash than you have in the bank. Most operators turn that order down. That's backwards. Purchase order financing exists for exactly this moment: when you've won a confirmed order bigger than your balance sheet. The facility pays your supplier directly against the order — often up to 100% of the supplier cost — so you can produce and deliver without fronting the inventory yourself.
What gets underwritten is the order, not your balance sheet
What makes PO financing different from a bank loan is what gets underwritten. A bank reads your balance sheet and your tax returns and decides you're too small for the order. A PO lender reads the order — who signed it, whether the customer is good for it, and whether your supplier can deliver. The confirmed contract is both the security and the story. Your own credit isn't the gate; the buyer's is. That's why an operator who'd never qualify for a bank facility the size of the order can still fund it — the order carries the weight.
PO is expensive — so convert to A/R the moment you invoice
Here's what most PO pages won't tell you straight: PO financing is expensive. It's priced per transaction for a single high-margin order, which is exactly why it works — it's the capital that turns an order you'd refuse into margin you keep. But you should never carry that cost all the way to payment. The moment you deliver and invoice, convert the structure to A/R financing — a far cheaper receivable line. PO funds the fulfillment; A/R bridges the receivable. Fulfill on the order, get paid on the receivable. That hand-off is the whole move, and it's why a smart PO structure costs a fraction of a standalone PO advance.
PO is the contract-cycle layer
Government purchase orders are assignable under the Federal Assignment of Claims Act, which makes federal contracts a natural fit — the order funds mobilization and fulfillment while the federal payment cycle runs. And PO is rarely the whole plan: it's the contract-cycle layer that stacks with A/R for the receivable and working capital for operations — one application, one specialist desk, a structure that reaches $20M+.
Financing the Growth? Cover the Risk That Comes With It.
A new facility, more equipment, and a bigger crew change your risk profile the moment the capital lands. Our sister company, Insurance Service 365, handles commercial coverage for operators scaling exactly like this — so the growth you just financed is protected.
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