Global PO Finance Solutions for Making Import Payments
Get quick access to cash against your purchase order and pay your suppliers quickly
Why International PO Finance?
Importing businesses, particularly in the United States, have to often make payments to their suppliers globally in order to ensure a seamless flow of inventory and business processes. To make sure this supply chain flows uninterrupted, Importing businesses in the United states have to ensure that their suppliers are paid promptly.
However, due to a significant lag between making these payments and realizing funds from domestic sales, companies often face a liquidity crunch that can be case a slowdown in business at best and case a serious cash crunch at worst.
This is precisely where a global PO financing solution can help businesses access critical working capital by simply leveraging a purchase order. An international purchase order can be legally enforced and financial institutions, including Drip Capital can provide advances against these purchase orders so businesses can make critical supplier payments on time.
Why opt for International Purchase Order Financing?
There are a few reasons why opting for a cross-border PO finance service is a good idea, for one, it is much quicker than any traditional form of a bank loan, the documents required are 1. A purchase order either from a domestic or an international company. 2. A proforma invoice or a supplier's estimate of the goods being imported and 3. Financial statements of the borrowing company.
This, coupled with the fact that a PO financing solution is competitive in pricing and built for global businesses are reasons enough for an international company to consider this financing technique.
How International PO Finance Works?
Supplier ships the goods and requests for payment from his Buyer
The Buyer submits soft copies of his Invoice and Bill of Lading to a Supply Chain Finance company like Drip Capital. Once approved, the buyer transfers 20% of the invoice value to Drip.
Drip Capital transfers 100% of the payment to the Supplier.
The Buyer pays back 80% plus charges to Drip Capital after 30/60/90 Days.
Why Choose Drip Capital?
We are a fintech company focused on solving the working capital problem for emerging market SME exporters by leveraging data and technology. We are re-building core parts of international trade finance infrastructure to level the playing field for small businesses.
Frequently Asked Questions
What are the requirements to get started with an international finance PO?
Recent financial statements, copies of buyer’s purchase orders, copies of vendor agreements, and current ageing of accounts payable and receivable.
Which industries typically opt for international PO financing?
What are the interest rates for PO financing?
How do I get started with funding my Trade Payables after receiving the Offer Letter?
What is purchase order in international trade?
Growth Stories
Seafoods Trader in Miami
Drip's credit line and financing process is transparent and works perfectly with our current bank. Thanks to them we are now able to purchase best quality products from reputed suppliers at attractive prices by paying upon shipment.
Meat Wholesaler in California
We were able to accept more orders from existing customers and also started working with some of the popular retail chains. This meant that we had to keep our cash flow healthier than ever to fulfil this increase in demand.
Coffee Importer in Florida
Using our bank lines to pay suppliers while cargo is still on water didn't fit very well with our working capital cycle, and we wish we would've known about Drip earlier. They have been really supportive in our growth and are helping us scale faster through both inventory and supply chain finance.