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Purchase order finance (also known as PO finance) is a form of working capital that enables businesses to fulfil customer orders without using their own cash. A lender pays your supplier directly to produce and deliver goods, allowing you to complete the transaction and generate revenue. Once your customer pays, the finance is settled. This type of funding is commonly used by growing businesses that need to fulfil large orders but have limited upfront capital.

The process involves submitting the purchase order, supplier details, cost breakdown, and customer information. Once approved, we pay your suppliers directly, enabling you to fulfil the order and generate revenue without using your own working capital.

Purchase order finance and invoice finance are both forms of working capital, but they are used at different stages of the sales cycle. Purchase order finance is used before goods are delivered, funding supplier costs so you can fulfil an order whereas Invoice finance is used after goods or services are delivered, unlocking cash tied up in unpaid invoices. Many businesses use both solutions together to fund the full working capital cycle and at Teybridge Capital Europe, we provide both options.

Once approved, supplier payments can typically be made within 48–72 hours and repeat clients often experience faster timeframes. Funding speed depends on the complexity of the order and supplier arrangements, but with Teybridge Capital Europe, our BRIDGE platform ensures fast access to purchase order finance so you can fulfil customer orders without delay.

Yes, a confirmed purchase order from a creditworthy customer is typically required to access purchase order finance. The order must be legally binding and supported by clear delivery and payment terms, ensuring the transaction can be completed and repaid.

We typically finance up to 80% of the purchase order value, depending on the strength of your customer, supplier, and transaction structure. This allows you to complete large orders without putting pressure on your cash flow or existing working capital.

We typically finance purchase orders from creditworthy businesses and government entities. Orders should be for non-perishable goods or completed services with clear delivery requirements.