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PO Finance:  A Tool for the Troubled ABL Lender

Have you ever considered using PO Finance as a safer means of financing a troubled client?

One can view ABL lending, compared to PO finance, as the difference between looking at a forest from thirty thousand feet to being on the ground and walking amongst the trees.  Perspective is different and so is control.

Consider a situation where your client has an order from a credit worthy customer that when filled will significantly improve the client’s situation.  You are not comfortable extending additional funding under the current loan facility.  PO funding offers a solution.

In PO finance each element of a sales transaction is evaluated monitored and controlled.  Consider:

  • Feasibility.  The first step in the PO process is to completely evaluate each element of the transaction from customer to product to budget to timing to delivery.  A detailed budget for the specific PO is required.
  • Verification.  Each element is verified.  Is the buyer acceptable; are the terms of the PO acceptable; are the vendors legitimate; what are their terms; can the timing be met?
  • Funding.  Each disbursement made is fully supported by documentation.  The lender makes all disbursements.
  • Monitoring and Control.  Each step of the transaction is followed.  Problems are quickly identified.
  • Reporting.  Each transaction is summarized in a detailed report.

Premier Trade Solutions is the company to provide the detailed servicing required for a successful PO transaction.  With over seventeen years of direct PO funding experience and the successful completion of over 2800 transactions Premier has the experience to help you evaluate and track PO opportunities.  We provide the information needed to make good decisions.  You make all credit and funding decisions.  Your client and your institution end up in a better financial position.

Please call Tom Cavanaugh at 303-228-1430 or email at [email protected] to see if Premier’s new program can help you with a troubled loan.

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