November marks the start of planning season for many Canadian businesses. Whether you’re mapping out Q1 orders or advising clients who are, this is when the question often comes up: “What is purchase order financing and is it right for this business?”
Today, we’re pulling back the curtain on exactly who we can help—and how.
The Sweet Spot: Who We’re Built to Serve
Purchase order financing works brilliantly for businesses that check these boxes:
✓ Annual revenue between $1M–$50M
✓ Need facilities between $250K–$10M
✓ B2B sales model (especially import/export)
✓ Gross margins of 20%+
✓ Mid-to-large creditworthy customers making substantial purchases
✓ Located in Ontario, Alberta, BC, Manitoba, or the Maritimes
But more importantly, they’re facing a familiar challenge: strong orders, but suppliers want payment upfront while customers pay in 60-90 days.
Industries Where PO Financing Shines
We’ve seen exceptional results with:
Distributors: Caught between supplier terms (pay fast) and customer terms (get paid slow). Large inventory purchases create cash flow gaps that limit the ability to accept bigger orders.
Manufacturers: Need upfront capital for raw materials, production, and labour costs to fulfil growing contracts—but customers pay 30-90 days after delivery.
Wholesalers: Fulfilling large lumpy contracts with credit worthy retailers that require up front supplier payments.
Oilfield Services: Strong contracts with large oil and gas companies, but 60-90+ day payment terms mean they need capital to cover equipment and products delivered while waiting to be paid.
The Real-World Impact
Here’s what purchase order financing enables:
- Accept larger orders without hesitation
- Pay suppliers promptly (up to 100% of supplier payments)
- Maintain healthy cash flow from order to delivery
- Preserve working capital for other strategic needs
- Grow without constraints
The Three Questions That Signal a Perfect Fit
Whether you’re a business owner or advising a client, these three questions quickly identify if PO financing is the solution:
- Are they turning down orders because they don’t have the cash to pay suppliers upfront?
- Do their suppliers require payment before shipment or production starts?
- Are their customers creditworthy, but their 60-90 day payment terms are strangling growth?
If the answer is yes to any of these, we should talk.
November Planning = December Preparation
The businesses that thrive in Q1 are the ones that secure their working capital solutions in Q4. Whether you’re planning for your own business or advising clients, don’t wait until orders are being turned down to explore options.
Join Our Upcoming Webinar!
Winning Big Contracts Without Cash Flow Stress
December 3rd | 11:00 AM – 12:00 PM EST
Learn the strategies growing businesses are using to:
- Accept larger contracts without straining working capital
- Navigate supplier payment requirements confidently
- Structure financing that supports growth, not limits it
- Identify when PO financing is (and isn’t) the right solution
Perfect for business owners, bankers, accountants, and fractional CFOs who want practical insights they can apply immediately.
Registration is coming soon.
Ready to Talk Now?
Call us at 416-651-9600 (GTA) or 403-717-9600 (Alberta)
We’ll walk through how purchase order financing works, assess if it’s the right solution, and show exactly how we’ve helped similar companies in specific industries.
Learn more about our Purchase Order Financing solutions.
