The Process
How Purchase Order Financing Works
Traditional loans look at your past. PO financing looks at your future — specifically, the confirmed purchase order sitting in your inbox.
You receive a purchase order from a creditworthy customer
You need capital to buy materials, hire labor, or pay subcontractors to fulfill it
The PO lender advances 70-90% of the order value
You fulfill the order and deliver to your customer
Your customer pays the invoice
The lender takes their fee and you keep the profit
The purchase order IS the collateral. The lender's risk is your customer's creditworthiness — not yours. If your customer is Home Depot, the US government, or a Fortune 500 company, the lender loves that paper.
Proof, Not Promises
PO Financing Scenarios — Real Orders, Real Advances
$800K PO from an aerospace contractor for precision machined components. Manufacturer needed $520K for raw materials and CNC runtime. PO financing advanced 85% of order value in 7 days. Order fulfilled on time. $280K profit after lender fees.
Result: $520K advanced → 7 days → $280K profit
$1.2M purchase order from a national retail chain for seasonal inventory. Distributor needed $900K to buy from overseas supplier. PO financing covered 75% of order value. Goods shipped on schedule. Retailer paid net-30.
Result: $900K advanced → shipped on time → retailer paid net-30
$2M materials order for a commercial buildout. GC had the contract but not the cash to buy steel, concrete, and electrical. PO financing advanced $1.6M against the confirmed contract. Materials delivered, project on schedule.
Result: $1.6M advanced → materials on site → project on track
$450K order from a grocery chain for private-label products. Processor needed $300K for ingredients, packaging, and production labor. PO financing funded in 5 days. Order delivered. Repeat orders followed.
Result: $300K advanced → 5 days → repeat customer secured
$650K PO for electronics components from a US assembler. Importer needed $500K to pay the overseas factory before shipment. PO financing covered the supplier payment. Goods cleared customs and delivered. Assembler paid net-45.
Result: $500K advanced → supplier paid → goods delivered
$350K order from a uniform company. Manufacturer needed $240K for fabric, thread, and production crew. PO financing advanced in 6 days. 10,000 units produced and shipped. Second order came 45 days later.
Result: $240K advanced → 6 days → repeat order earned
We landed a $1.2M order from a national retailer — our biggest ever. But we needed $900K to buy the inventory to fill it. Our bank said 45 days. The order shipped in 21. Basecamp's team structured PO financing in 7 days. We delivered on time, the retailer paid net-30, and we've gotten three reorders since.
Wholesale Distributor
Houston, TX
PO Qualification
See If Your Purchase Order Qualifies (60 Seconds)
Tell us about your order and we'll match you with PO lenders who fund your industry. No documents needed upfront. No credit impact.
See What You Could Qualify For
Slide to your average monthly bank deposits.
Estimated Approval Range
Based on 100-150% of monthly revenue
No hard credit pull · No obligation · Estimate only
Full Transparency
The Real Cost of PO Financing
PO financing costs 5-7% of the order value as a fee — not an interest rate. That sounds expensive until you calculate the alternative: losing a $1M order because you couldn't fund $850K in materials. The fee is the cost of fulfilling the order. The profit is everything above it.
Right Fit?
Who PO Financing Is Built For
Great Fit
Not the Right Product
Honest Comparison
PO Financing vs Working Capital vs Invoice Factoring
If you already delivered and you're waiting to get paid — that's invoice factoring. If you haven't delivered yet because you can't afford to fill the order — that's PO financing. Two different problems, two different products.
Bobby Friel
Founder, Basecamp Funding
PO financing is the most underused product in business lending. Our team talks to manufacturers and distributors every week who are turning down orders because they can't afford to fill them. They have the customer. They have the order. They just don't have the cash to buy materials.
That's exactly what PO financing solves — you fund against the order itself, fulfill it, collect from your customer, and keep the profit. The 5-7% fee is the cost of saying yes to business you'd otherwise turn away.
— Bobby Friel, Basecamp Funding - Founder
Fear Removal
Every PO Financing Objection Answered
The fee seems high — 5-7%?
Compare it to the alternative: turning down a $1M order. The 5-7% fee on $850K is $42K-$60K. The profit on the order is $150K+. You’re paying $50K to make $150K. That’s a 3x return on the financing cost.
What if my customer doesn’t pay?
PO lenders evaluate YOUR customer’s credit — not yours. If your customer is a Fortune 500 company or government agency, the risk is minimal. If your customer has poor payment history, the lender won’t advance against that PO.
Can I use this for recurring orders?
Yes. Many businesses use PO financing as an ongoing facility for repeat customers. Once the first order funds and pays cleanly, subsequent orders process faster.
How fast can I get the advance?
5-10 days for most PO financing. Larger or more complex orders (multi-shipment, international) can take 10-21 days. The timeline depends on verifying the PO and your customer’s credit.
What documents do I need?
The confirmed purchase order, your customer’s information, your supplier quotes, and 4 months of bank statements. The PO lender does their own verification of the order.
Can I combine PO financing with other products?
Yes — capital stacking. PO financing covers the order fulfillment. Working capital covers payroll during production. Equipment financing covers the machinery to produce the goods. Multiple products, multiple lenders, one application.
PO over $1M? Our commercial team structures capital stacks that combine PO financing with equipment loans, working capital, and SBA products into one package.
Talk to a Commercial Specialist →Industries
Industries Where PO Financing Is Critical
Raw materials, production labor, CNC runtime. Orders exceed cash reserves.
View Industry Hub →Inventory purchases for large orders. Seasonal buys. Import payments.
View Industry Hub →Materials for large contracts. Steel, concrete, electrical, mechanical.
View Industry Hub →Equipment and fuel for dedicated contract mobilization.
View Industry Hub →Pre-Qualify Now
Don't Turn Down Your Next Big Order
60 seconds. No documents upfront. No credit impact. Find out if your PO qualifies for financing — before the deadline passes.
See What You Could Qualify For
Slide to your average monthly bank deposits.
Estimated Approval Range
Based on 100-150% of monthly revenue
No hard credit pull · No obligation · Estimate only
FAQs
Purchase Order Financing FAQs
Purchase Order Financing — Fund Large Orders Before You Fulfill Them
I talk to manufacturers and wholesalers every week who land orders they can't fill. The customer is ready. The PO is signed. But the materials cost $500K and the bank wants 60 days of paperwork. PO financing solves that in 5-10 days — you advance against the order itself, buy your materials, fulfill the order, and keep the profit minus a 5-7% fee. For businesses whose orders routinely exceed their cash reserves, this is the difference between growth and turning away revenue.
And here's what most people don't realize: PO financing stacks with other products. Need the advance for materials PLUS working capital for payroll during production PLUS equipment financing for the machines? That's capital stacking — multiple products, multiple lenders, one application through Basecamp. Run the numbers on our loan cost calculator. For orders over $1M, our commercial team structures the entire capital stack.
— Bobby Friel, Basecamp Funding - Founder
Don't Turn Down the Order — Fund It
60 seconds. No credit impact. No obligation.
See What You Qualify For →No hard credit pull · Free to check · Nationwide