TOP 10 Purchase Order Finance China

purchase order finance china 2023 June

What is purchase order financing?

Purchase order finance is commonly used for trading businesses that buy and sell; having suppliers and end buyers. Financing is on the basis of purchase orders that allow a shot of finance into a growing company – this type of facility is sometimes used or not known about by many companies and is at many times an alternative to investment.

Do you buy in China without a purchase order (PO)?

I see a lot of small companies buying in China without a purchase order (PO). They simply accept the pro-forma invoice from the supplier. I think this is dangerous. It shouts “inexperienced buyer” to the supplier.

How much does it cost to finance an order?

Purchase order financing fees typically range from 1% to 6% per month and are usually priced on a per-30-day period. These fees are charged on the total of the supplier’s costs, but generally increase the longer it takes your customer to pay their invoice.

What is a purchase order number (Po)?

When the goods that need to be purchased are agreed upon, the purchase order is created. The PO lists the date of the order, FOB shipping information, discount terms, names of the buyer and seller, description of the goods being purchased, item number, price, quantity, and the PO number.






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