Purchase Order Financing

With Purchase Order Funding from Magnolia, you can advance cash on purchase orders for pre-sold inventory from your vendors. Most asset-based lenders or factoring companies won't advance against Purchase Orders, but Magnolia pays your suppliers directly so you can fulfill specific orders and continue to grow your business.

How does it work?

  • You have a firm, non-cancellable order from your customer, but you need materials to fill it. You get an invoice from your suppliers and pass it on to us.
  • Magnolia wires funds directly to your supplier who immediately ships the materials you need at the best possible price. Your customer receives the product they need on time.
  • Once you invoice your customer for delivered product, you get an immediate advance on the invoice minus the amount paid to your supplier and our fees. The customer invoice then becomes part of our A/R financing program.


Magnolia Financial employees meeting in conference room

Why choose Magnolia Financial?

  • We will cover up to 100% of your vendor's costs so you can always fill a Purchase Order on time.
  • Hand off the hassle of collections and due diligence to your dedicated account executive and a management team that values your relationship with your customers as much as you do.
  • From the start of an order to payment on your delivered order you're covered by a lender that understands you and your business.


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What our Clients Say

Kerry Coker, KAMADO JOE

Kerry Coker, KAMADO JOE

"A Breath of Fresh Air"

"The Magnolia guys have a real ‘can do’ attitude. Marc Smith and his team are super responsive and upbeat. They can fund within a matter of days. They are always looking for positive opportunities for their clients. It's a breath of fresh air to work with someone like that."

Frank Workman, Dealers Supply & Lumber Company

Frank Workman, Dealers Supply & Lumber Company

"Available when we needed them"

""Magnolia was really available when we needed them, and the leadership at Magnolia was empathetic to the cold, harsh nature of traditional banking. It gave us a tremendous amount of comfort during a difficult time. Marc Smith and his team really understood where we were, where we were going and gave us the help we needed to get there.""

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