Oxford Commercial Finance (OCF), a subsidiary of Oxford Bank, expanded its line of flexible working capital solutions for small to medium-sized businesses (SMBs) with the addition of Purchase Order (PO) Financing as an add-on to the lender’s popular Accounts Receivable (AR) and Asset-Based Loans (ABL).
PO financing allows OCF customers to “temporarily” increase their borrowing capacity with revolving credit to cover direct costs associated with fulfilling purchase orders. These could include cost of goods, freight, duties, and logistics – products, supplies, and/or fees necessary to ensure that orders are fulfilled and delivered on time.
This type of flexible business financing is vital for manufacturers, importers, exporters, and distributors when the speed at which they are signing new orders is outpacing the company’s existing cash flow, supplier credit, and/or existing revolving lines of credit. Furthermore, PO financing helps build a company’s balance sheet (receivables, cash, and inventory) without giving up equity, making it attractive to certain types of corporations, partnerships, and family-owned entities. Competitive financing rates based upon annual sales volumes, average invoice size, payment terms extended to customers, and borrower’s credit quality.
OCF President Mick Goik says, “PO financing allows companies to pay vendors without delay and quickly fulfill new orders in hand. Our PO financing is designed to be flexible and convenient and work in tandem with our other lending vehicles such as AR financing and ABLs. This eliminates the complexity of working with several business lenders and significantly speeds up the financing process.”
With the backing and treasury management of 139-year-old, FDIC-insured Oxford Bank, OCF assists SMBs to improve cash flow, drive growth, and comfortably scale, with creative and flexible financing options, which now include:
- Accounts Receivable Funding to generate immediate cash flow from accounts receivable
- Asset Based Lending to unlock cash tied up in accounts receivable, inventory and equipment
- Purchase Order Financing to fulfill orders during periods of accelerated sales growth
- Leasing to finance critical equipment
- Term Loans to access flexible funding options to enable business growth
OCF provides financing options for companies across a variety of industries including:
- Alternative energy
- Distributions
- Manufacturing
- Oil & gas
- Service providers
- Staffing
- Transportation
- Wholesale
- Many more