Oxford Commercial Finance, a subsidiary of Oxford Bank, expanded its line of working capital solutions for small to medium-sized businesses with the addition of purchase order financing as an add-on to the lender’s accounts receivable and asset-based loan products.
Purchase order financing allows Oxford Commercial Finance customers to “temporarily” increase their borrowing capacity with revolving credit to cover direct costs associated with fulfilling purchase orders. These costs could include the cost of goods, freight, duties and logistics, products, supplies and/or the fees necessary to ensure that orders are fulfilled and delivered on time.
This type of business financing could be used by manufacturers, importers, exporters and distributors when the speed at which they are signing new orders is outpacing the company’s existing cash flow, supplier credit and/or existing revolving lines of credit. Furthermore, purchase order financing can help build a company’s balance sheet (receivables, cash and inventory) without the need to give up equity.
“Purchase order financing allows companies to pay vendors without delay and quickly fulfill new orders in hand,” Mick Goik, president of Oxford Commercial Finance, said. “Our purchase order financing is designed to be flexible and convenient and work in tandem with our other lending vehicles, such as A/R financing and ABLs. This eliminates the complexity of working with several business lenders and significantly speeds up the financing process.”