What’s the difference between Purchase Order Financing and Factoring?

Purchase order financing, also known as 'PO Financing”, provides funding for businesses with purchase orders to pay their suppliers and smooth out cash flow. It's an effective and popular option for businesses of all sizes needing a quick and effective way to finance their expansion and growth. 

Factoring is financing based upon one company buying another company’s accounts receivable or debt, i.e., its invoices or monies owed. Alternatively, said receivables or debt can be used as the collateral to secure a loan, which BCG has funded.

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Why Partner with Beacons Capital Group for Purchase Order Financing?

Our creative, fast and flexible financing options are specifically designed to overcome the cashflow challenges business face in an effort to expand, fulfill large orders and/or cover seasonal spikes. 

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Will my business qualify for PO Financing with Beacons Capital Group?

With our broad experience funding businesses in various industries, we can suggest the best financing option for you. Some of the critical factors we consider are creditworthiness, reputation, company management, supply chain conditions, and the proposed repayment plan. Solid and reputable parties to the transaction are the primary criteria.

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Does Beacons Capital Group provide inventory financing?

Yes. After evaluating the proposed terms of the opportunity. i.e., industry, product type, and length of the loan, BCG can fund up to 100% of your purchase orders, supporting your expansion and growth efforts.

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Will purchase order financing with Beacons Capital Group affect my equity in my business?

No. PO Financing is a non-dilutive, off-the-balance sheet financing solution and does not require the company to offer any equity to BCG to receive funding. 

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Will Beacons Capital Group consider funding multiple transactions with my business?

BCG has grown by partnering with our customers and focusing on service and relationships, not just individual deals. We strive to support and accelerate your future growth by providing you the confidence to take on larger opportunities as they arise. 

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What is the deal size Beacons Capital Group would consider funding?

Our range starts at $50,000 and expands up to $5 million.

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What is the funding decision timeline for Beacons Capital Group?

Our decisions are shared within a few business days.

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Once approved, how long does it take to receive Funding?

From the time funding terms are accepted, and all due diligence has been completed, our typically funding occurs within in 2-3 business days.

 

What is Beacons Capital Group fee structure for Funding?

We’ll look at your business and evaluate the opportunity, large and small, free of charge and with no future obligations.   Each deal is unique and the fee structure will be determined based on specific risk factors – the company’s product, the operators and the industry.