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Is your company a young and/or rapidly growing
US- or Puerto Rican-based reseller, exporter or
importer that is competing for large orders?
If the answer to that question is "YES!",
then:
-
Does your supplier demand all or part of
his payment up-front? And,
-
Does your customer demand
30-day (or more) payment terms? And,
-
Are you pinched for the cash to fund
this transaction? And,
-
Can the goods be shipped directly from
your supplier to your customer (drop-shipped)?
Then Sierra has a program that is just right
for your business -- even if your supplier or
your customer (or both!) are overseas.
Purchase order funding, also known as
trade finance or
purchase order financing is a program whereby
funds for all or part of your cost of goods
are made available directly to your
supplier prior to or upon shipment of the goods,
usually with a Letter of Credit (an LC).
With this program, even if your supplier is overseas,
you get added benefit and protection of your reputation
for delivering quality goods meeting your buyer's
specifications, because the funding source's agent
will carefully inspect the goods at the point of
departure!
It works this way:
-
You get a purchase order for the retail
price of the goods, plus shipping and other
delivery costs.
-
The funding source opens an LC in
favor of your supplier for all or part of the
wholesale price of goods, plus any agreed
ancillary charges. Conditions appropriate to this
particular order are attached to the LC.
-
The goods are manufactured; the funding source's
inspector is notified.
-
The goods are made available to the shipping agent.
-
The inspector examines the goods for conformance to
the specifications of your customer's purchase
order; the goods are released for shipment.
-
Upon arrival and acceptance of the goods at
the customer's location, you issue an invoice
to your customer, and you pay the Purchase Order
Funding Source: any funds that he
disbursed, interest for the use of any such
funds, and his fee for the LC.
If the order is not COD, then you can also arrange
for Sierra to provide accounts receivable funding
(factoring) for the transaction. In that case,
the Factor directly pays the monies
due to the Purchase Order Funding Source
out of the factoring advance for the invoice.
Any excess over those fees from the advance
are remitted to you at that time.
Factors are often reluctant to deal with
offshore buyers. So, if your non-COD customer
is overseas, then you can require that the
buyer open an LC in your favor that is confirmed by
a US bank. In that case, the Purchase Order
Funder will be taken out upon delivery of the
goods with funds from the buyer's LC.
Let one of our experts show you how to compete
for bigger orders and increase your profits
through use of Purchase Order Financing.
Call us TODAY for your FREE CONSULTATION
--
(toll-free in the USA) -- 1-(866)-410-9702
Or
Contact Us.
Just use our SECURE "ask-us" form.
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