BARCLAY ASSOCIATES OFFERS PURCHASE ORDER
AND LETTER 0F CREDIT FINANCING. OUR
PROGRAM ENABLES YOUR COMPANY TO FINANCE
AND FILL ORDERS WITH LITTLE OR NO COLLATERAL
OTHER THAN A NON-CANCELABLE PURCHASE ORDER
AND THE MERCHANDISE ITSELF.
Since 1975-Contact us TODAY for a FREE Consultation
Phone or Text 856-278-6103
When a business finds itself in the position of not being able to fill a customer's purchase order, it can mean the loss of the order and all possible future business. We
offer a "Supplier to Customer" purchase order financing program. Usually the funding source will advance funds directly to the supplier or will post Letters of Credit on behalf of, you, the client. Purchase Order Financing is available to nearly all industry sectors.
THE SUPPLIER TO CUSTOMER PROGRAM
This program enables a small company or broker to purchase large amounts of goods and fill orders for creditworthy customers.
- Letters of credit or bank drafts are used to pay your supplier.
- This type of P.O. financing requires that the goods are shipped directly from the supplier. (located overseas or in the U.S.) directly to a creditworthy customer located in the U.S.
- The goods are not handled by the client. They may be shipped direct to the customer or to a bonded warehouse for breakdown for several customers.
- Because of this fact, you, the client, do not have to be a large well-rated company. You can be a manufacturer, distributor or middle-man such as a broker or import-export company.
- Our Supplier to Customer program makes it possible for the lender to advance funds with little or no collateral other than a confirmed purchase order and the goods themselves.
- Whether a transaction is import or domestic, this plan can be employed to to make financing available to many companies whose asset growth has not yet caught up to sales.
- The scenario shown below represents the only type of purchase order/letter of credit financing that we can provide. We CANNOT provide funds for you to buy components from suppliers for assembly on your premises.
An Example of a typical "Supplier to Customer" Purchase Order transaction
The following scenario illustrates a typical Purchase Order transaction. All costs are best estimates, but should be close to the actual charges. A transaction cannot be executed on bulk commodities such as grain, corn, coal etc. Goods must be packaged or bound in bags, cases or strapped units which can be counted. You must have a supplier who is capable of delivering goods that strictly comply with samples furnished by you. The shipment must go directly to the final customers or to a bonded warehouse for immediate breakdown and re-shipment to the customer. The shipment cannot go to your plant or warehouse.
1) You receive a purchase order from your customer. The purchase order must be unconditional. It cannot contain consignment or guaranteed sale clauses. The purchase order must be issued by a company with a good credit rating.
2) A letter of credit or bank draft is opened by the financing source in favor of your supplier. The supplier may be located in the U.S. or overseas. The CUSTOMER (issuer of the purchase order) must be located in the United States.
3) Funds are released to your supplier when the goods are inspected at point of embarkation, and a certificate of specification compliance is issued. Compliance is based on samples furnished by you. The cost to inspect and to issue the certificate is usually $500 to $700 per shipment but may be more based on factors such as the location of inspection site, type of merchandise etc.
4) Goods are shipped via water or air. There is a charge for the opening of the letter of credit or the initiating of the bank draft. Goods must either be shipped direct to your customer or to an approved public bonded warehouse. The merchandise may not pass through your own premises. The merchandise may not be materially changed or repackaged without prior approval from the financing source.
5) You issue your invoice after verification of receipt of the goods by your customer.
6) The invoice is then purchased by the financing source and a financing (factoring) charge begins from the time of invoicing until the invoice is paid by your customer.
7) Barclay Associates charges a small fee based on the total invoice amount factored. If factoring is not involved (i.e. when the payment terms are C.O.D.) then this fee is based on the amount of the letter of credit opened.
8) You would pay any other normal fees for freight forwarding, cargo insurance, port fees etc.
The "Supplier to Customer" Purchase Order program enables you to take on an unlimited amount of business using good suppliers and selling to credit-worthy customers. Using this program you can forget about financing shipments and can concentrate of selling to your markets.
Contact us TODAY for your Purchase Order Financing and letter of credit funding needs. Don't lose a single order for lack of funds.