P.O. Financing



Description:

  • Compliments invoicing discounting facility.
  • Manner to take advantage of sales opportunities regardless of current resources.
  • Financing re the purchase of raw materials, supplies and manufacture of product(s).
  • Applicable to confirmed purchase orders only.


Process:

  • Contact Omni-Rand and/or submit Application form.
  • Agree to factor, with us, the invoices generated from the P.O. in question then complete and submit Evaluation form.
  • Conversation with “subject matter expert”.
  • Submission of required documents.


FAQs:

  • What is the minimum size Purchase Order that will be entertained?
    • Range is $50,000 to $1,500,000
  • What if our suppliers are in Asia and Europe ?
    • Letters of Credit will be issued to satisfy overseas suppliers.
  • What information is required regarding a specific order?
    • Total value of P.O.
    • Cost of each product/unit.
    • Gross Profit margin.
    • Timeframe: Purchase Order to Invoice
    • Terms: payment terms given to customer.
    • Number of suppliers
    • Location of suppliers
    • Product: standard, altered, custom, semi-custom
  • What would be the profile/characteristics of an ideal P.O.?
    • Total value of P.O.: approx $200,000.
    • Gross Profit margin. Greater than 15/20%.
    • Timeframe: Purchase Order to Invoice: 60 days or less.
    • Number of suppliers: few.
    • Terms: 15-60 days.
    • Opportunity for repeat business.
    • Agree to factor resulting invoices.
    • Product: standard, “off-the-shelf”
  • What is the approximate cost of P.O. financing?
    • There is no standard pricing as so many variables but as a guide: approx .75% per week