Loans that Help You Get Back to Business
Live Oak Bank purchase order financing is a funding option for small businesses government contractors that need cash to fill single or multiple Federal Government orders. For many contractors, cash flow problems exist because there is not enough money available to cover the costs of fulfilling the supplier’s up-front costs. As a result, there may be an order from a Federal agency that can’t be fulfilled due to lack of cash to meet the supplier’s upfront costs.
Live Oak Bank understands this dilemma and why the Federal Government’s creditworthiness makes it a viable option. For new businesses, or businesses without sufficient cash today, we offer financing to fulfill the supplier agreement upfront costs, usually because of a large order.
Are you a good candidate for a purchase order loan?
- You have received a purchase order from a Governmental department or agency ordering supplies from your business.
- Your company does not directly produce the products that you sell.
- As the reseller you have identified a supplier who can deliver the exact goods specified in the order.
- The supplier identified has a proven track record of delivery and are financially fit.
- The purchase order in question is non-cancelable.
The Process is Simple
- Live Oak Bank reviews the supplier to validate their ability to perform the transaction for you.
- A supplier agreement (domestic) or Commercial Letter of Credit (international) is used to confirm and facilitate the transaction.
- Terms can range from pre-payment upon order to COD or a mix of the two (partial deposit upon order, payment in full upon shipment/delivery).