February 8, 2014 | Case Study

Case Study: Purchase Order Financing

Our client, a small wholesaler of novelty items, received a large order from a major drugstore chain.   The client had no inventory at the time of the order. The foreign manufacturer required full payment upon completion of the order. Additionally, the shipping company required partial payment to complete delivery to the buyer.  To fulfill the purchase order, the client needed $500,000.

Solution

Abington Emerson Capital was contacted by the client after the purchase order was received from the buyer.  In less than a week, Abington Emerson Capital was able to evaluate the transaction, underwrite the client, and approve a loan. Our credit decision was based on the following factors:

  • The buyer was a public company with a strong credit rating.
  • The client had been in the industry for 18 years and had a strong understanding of the manufacturing and delivery process.
  • Abington Emerson Capital verified the terms of the contract with the buyer. In addition, the buyer assigned payment directly to Abington Emerson Capital.

The client received the full $500,000 requested and was able to finance 100% of the cost to manufacture and ship the product to the buyer.

About Abington Emerson Capital

Abington Emerson Capital is a commercial finance company focused on providing short-term loans to small and mid-sized businesses.  As a privately held company, Abington Emerson Capital offers an alternative to the one-size-fits-all approach of traditional bank underwriting.  You are assessed based on your expertise, quality of your work, and the stability of your clients.  The result is a flexible, customized financing solution that meets your liquidity needs in an otherwise difficult lending environment.