Finance question
How do I fund a large purchase order I can't afford?
You use purchase-order finance. The lender pays your supplier so you can fulfil an order that is bigger than your current cash, and you repay once the goods are delivered and your customer pays. It lets you say yes to work you could not otherwise fund. Ventas arranges it across its lender panel, subject to lender assessment.
Get your free rate quote
Tell us a few details and we will come back with your indicative rate. No obligation.
Thanks, we are on it
Your enquiry is in. Our team will be in touch shortly with your indicative rate and next steps.
The short answer
Take the big order, fund it from the order itself
A large order should be good news, not a cash crisis. When a customer places an order that is bigger than the cash you have to buy the stock or materials, purchase-order finance steps in. The lender pays your supplier directly so the goods can be made or shipped, which means the size of the order is no longer the reason you have to turn it away.
The finance is repaid from the order it funded. Once you deliver and your customer pays, the drawdown clears, less the lender's fee. Because the funding is tied to a confirmed order with a real end customer behind it, lenders can look at the strength of that order rather than only your balance sheet, which is why a growing business can often fund an order it could not have covered alone.
As a broker, Ventas is paid by the lender on settlement, so there is no upfront fee to you. We look at the order, your supplier, your customer and your margins, then match the deal to the lender most comfortable with the trade. Purchase-order finance often works alongside trade or invoice finance so the whole cycle from supplier to customer payment is covered, subject to lender assessment.
Do you qualify?
What makes a purchase order fundable.
A confirmed order
A real customer order, not just a quote or an idea.
A named supplier
A supplier who can deliver once they are paid.
A workable margin
Enough margin in the order to carry the cost of funding.
A creditworthy customer
An end customer the lender is comfortable to fund against.
Why purchase-order finance wins bigger jobs
Say yes to more
You can accept orders that are larger than your cash on hand.
The supplier gets paid
The lender settles the supplier so production or shipping starts.
Repaid by the order
The drawdown clears when your customer pays for the delivered goods.
A real example
A small manufacturer wins a $200,000 order but only has enough cash to cover part of the raw materials. Purchase-order finance pays the supplier so production runs, the goods ship, and the customer pays on delivery. The drawdown clears from that payment and the business kept an order it would otherwise have declined. Illustrative only.
Common questions
Frequently asked questions
Is this the same as a business loan?
No. It is tied to a specific confirmed order, so the funding pays your supplier and is repaid when your customer pays, rather than being open-ended debt.
Do I need property to secure it?
Often no. The order and the trade usually carry the deal rather than real estate, subject to lender assessment.
Can it work with invoice finance?
Yes. Purchase-order finance funds the supply and invoice finance can cover the wait for payment, so the whole cycle is handled.
What if my margin is tight?
The order needs enough margin to carry the cost of funding. We check that with you before submitting so the deal still makes sense.