Aberdeen Corporate Finance | Premium Commercial Finance Broker

Purchase order finance \u2014 also known as purchase finance or PO finance \u2014 provides the working capital to pay your suppliers when you have confirmed orders from creditworthy customers but lack the cash to fulfil them. It is one of the most effective trade finance tools for growing businesses whose order book consistently outpaces their available cash.

Aberdeen Corporate Finance arranges purchase finance facilities through specialist trade finance providers who understand the dynamics of order-based funding and can move quickly to support time-sensitive transactions.

Key Features

Order-Based Funding

Purchase finance is triggered by a confirmed order from a creditworthy customer. The finance provider pays your supplier directly, you fulfil the order, and the facility is repaid from the customer's payment. This allows you to take on larger orders without upfront capital.

Up to 100% of Supplier Costs

Unlike traditional lending which is typically based on historical trading, purchase finance can cover up to 100% of the supplier cost — including freight, duty, and VAT in some cases. Funding is based on the strength of the underlying transaction, not your balance sheet.

Credit Insurance Integration

The finance provider typically requires the end-customer to be credit insured or independently verified as creditworthy. This protects all parties and enables higher advance rates. We arrange trade credit insurance alongside the finance facility where required.

Supplier Payment Guarantee

Your supplier receives guaranteed payment — either through a letter of credit or direct payment from the finance provider. This strengthens your supplier relationships and can help you negotiate better purchase terms and pricing.

Scalable Facility

Purchase finance facilities scale with your order book. As you win larger contracts or increase order volumes, the available funding increases accordingly. There is no fixed limit — each transaction is assessed individually.

Domestic & International

Purchase finance is available for both domestic and international supply chains. For international transactions, the facility can be combined with letters of credit, currency management, and cargo insurance.

Ideal For

Importers and wholesalers fulfilling large customer orders

Distributors needing to purchase stock against confirmed orders

Manufacturers requiring raw materials for contracted production

Growing businesses whose order book exceeds their cash reserves

Seasonal businesses purchasing stock ahead of peak trading periods

Businesses trading with large retailers or public sector clients

Companies expanding into new product lines or markets

Businesses where suppliers require payment before goods are shipped

How It Works

Confirmed Customer Order

You receive a confirmed purchase order from a creditworthy end-customer.

Supplier Payment

The finance provider pays your supplier directly — by bank transfer, letter of credit, or other agreed method.

Goods Delivered

Goods are shipped to you (or directly to your customer). You take delivery, inspect, and fulfil the order.

Customer Pays

Your customer pays on their agreed terms. The finance provider is repaid from the proceeds, and the balance (your profit margin) is released to you.

Important Notice: Purchase finance is subject to the creditworthiness of the end-customer and the nature of the goods. All facilities are subject to provider criteria. Aberdeen Corporate Finance Limited is not regulated by the FCA.

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