Purchase Order Financing Law and Legal Definition

Purchase order financing is a method for a business to obtain quick capital. The steps to purchase order financing are: get a purchase order from customer; find a reliable supplier for the products, and lastly place the order with that supplier. It is a great solution for when cash flow reserves are low. Purchase order financing frees up cash for critical business expenses. Another benefit is that it does not show up as debt for business. This makes it possible to not only use extra cash to get discounts on purchases, but it also allows business to get approved for more financing.