Exclusive Access to Purchase Order and Supply Chain Capital for TAP Partners
The ability to access working capital is important to any business, but especially those looking to expand their offerings and services to new or existing customers. It can be especially maddening when orders and opportunities are already in the pipeline, but liquidity issues impede a company’s fulfillment process.
Obstacles Can be Overcome
For those businesses that have discovered traditional financing options are unavailable for companies of their size or too cost prohibitive and complex to be desirable, purchase order and supply chain financing through TAP may be the answer. Available at a significant discount to clients in our ecosystem, the influx of capital can be the fuel that enables revenue to increase much more rapidly than would have otherwise been possible.
Purchase order financing is a short-term lending method that helps cover the cost of manufacturing or purchasing goods that have already been sold to a customer. For large orders that need to be produced and delivered before payment is received, it’s a way for originating companies to immediately receive the working capital required to fulfill commitments and remain liquid. They then invoice their customers as they traditionally would but with remuneration made to TAP as payment for the accounts receivable loan that enabled them to satisfy customers and fulfill large orders they otherwise might have had to pass on.
Supply chain financing also offers companies the opportunity for early payment for the goods it produces, but includes the added benefit of ensuring the stability of the supply
chain for its customers that depend on that for their own sales. In this situation, buyers approve a supplier’s invoice, get their orders immediately, and commit to paying for products on a traditional billing schedule. Our client then sells that invoice to TAP at a discounted rate, receives immediate payment, and has cash on hand to use for day-to-day business operations.
Did You Know?: Industry sectors that typically utilize significant levels of supply chain financing include consumer goods, transportation, and manufacturing.
Fact: TAP’s experts can determine whether either of these financing options are right for your business from both a short and long-term perspective.
Family office investment preferences can be as varied as the families doing the investing, but that doesn’t mean there aren’t common themes each may look for that provide perspective for small and medium-sized businesses that may be in need of capital.