A valued customer has a sales opportunity of unprecedented size, represented by a purchase order from a reputable buyer. To purchase the inventory needed to complete the sale, your customer is seeking a credit line extension. Unfortunately, you have already extended the customer's credit line to its maximum justifiable exposure.
Because of your long history with this customer, you have stretched your advance formulas significantly in the past. However, the measurable risks combined with the size of the requests are making it impossible to accommodate your customer's needs. This scenario is becoming increasingly common in today's hyper-competitive market. So, leading commercial lenders are recommending complementary financing sources, such as Transcap's purchase order finance programs.
Transcap's purchase order finance is not a replacement for conventional financing. It can be used alongside your customer's existing lending facilities to handle surging capital requirements often brought on by accelerated growth or peak seasonal sales. Purchase order finance provides rapid availability of new capital — up to 100% of working capital requirements — to enable your customer to purchase inventory specifically to fill established purchase orders.
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