Import Finance
Purchase Order Finance for Imports
Purchase order finance funds the gap between receiving a customer order and paying your overseas supplier. It is most useful when you have strong end buyers but limited cash to produce and ship.
If you want the broader context, start with trade finance fundamentals.
1) What PO Finance Funds, and What It Does Not
PO finance can fund supplier deposits, production milestones, and final payment depending on the file and controls.
It does not fix weak unit economics or customers that do not pay.
2) The Two Core Eligibility Drivers
End customer strength
PO finance underwriters care about who pays you and how reliably they pay.
- Track record of purchase history
- Credit quality and dispute behavior
- Contract clarity on specs, delivery, acceptance
Supplier and logistics feasibility
PO finance fails when the supplier and shipping plan are not controllable.
- Supplier capacity and lead time reliability
- Inspection and QC plan that can be evidenced
- Title transfer point and incoterms alignment
3) How the Funding Flow Usually Works
| Stage |
What happens |
| PO validation |
End customer PO is verified, terms are checked, and performance conditions are mapped. |
| Supplier confirmation |
Supplier proforma invoice, production plan, and payment milestones are confirmed. |
| Controlled supplier payment |
Funder pays supplier directly or under a controlled workflow, not via open ended transfers. |
| Shipment and documents |
Shipping documents are collected and reviewed for compliance with the transaction terms. |
| Takeout plan |
Facility exits into inventory finance, AR finance, or customer payment on delivery. |
4) What Makes a PO Finance File Get Declined
- Thin gross margin that cannot absorb financing cost and operational friction
- Customer acceptance terms that are vague or easy to dispute
- Supplier that cannot be verified or refuses documentation
- Too many broker layers between principals
- No credible takeout plan after goods ship
5) How Financely Runs PO Finance Mandates
We pressure test the PO, supplier terms, and logistics. We then structure a controllable funding flow and run lender outreach to produce written terms.
Start with How It Works
, then submit the file.
Request PO Finance Terms for Imports
Provide your customer PO, supplier proforma invoice, margin and landed cost model, lead time, and your planned takeout route after shipment.
We will revert with next steps and feasibility.
Frequently Asked Questions
Is PO finance available for first-time importers?
Sometimes, but underwriting will lean heavily on the end customer, supplier verifiability, and controls. Weak documentation usually kills speed.
Who receives the money in a PO finance transaction?
Often the supplier is paid directly under a controlled workflow. The goal is to avoid untracked cash leaving the structure.
Can PO finance fund multiple shipments under one contract?
Yes, if reporting and shipment segmentation are clear. Lenders want clean batching and documentary evidence per shipment.
What is the most common takeout for PO finance?
Inventory finance after goods arrive, or AR finance once the end customer is invoiced and eligible receivables exist.
Does PO finance work for custom manufactured goods?
It can, but lead time, inspection evidence, and acceptance terms must be tight. Customization increases dispute risk.
What information speeds up PO finance underwriting?
Customer PO and payment history, supplier proforma invoice, lead time, landed cost breakdown, and a clear takeout plan.