Universal Funding, an accounts receivables financing company, recently announced purchase order financing as an additional option for companies seeking commercial lending.
Star Funding provided a $1 million financing to a manufacturer of children’s apparel. The facility provides A/R financing and PO financing and will support existing and larger customer orders.
Crossroads Financial provided $700,000 PO financing to a food manufacturer. In connection with the transaction, Crestmark provided the food manufacturer with an additional $750,000 factoring facility.
Crossroads Financial said it provided a $1.5 million inventory revolving line of credit for the benefit of a hydraulic adapter manufacturer.
Crossroads Financial provided a $500,000 PO facility for a manufacturer and distributor of high-end women’s apparel. Crossroads is partnering with Amerisource Funding, which is providing an A/R factoring facility
When Charles Dickens wrote, “It was the best of times, it was the worst of times,” he might as well have been writing about the current economic climate. An era of uncertainty began after the 2008 crisis, and while certain industries have blossomed, many industries continue struggle through these economic changes. Increased bank regulation and the tightening of credit have severely impacted the traditional financing avenues and the borrower’s ability to secure traditional financing.
It’s an all-to-familiar tune these days … a borrower in distress has no access to traditional financing or supplier credit to fulfill a spike in business. Purchase order financing can provide an excellent solution to turn such companies around and back on the road to financial stability.