A confirmed purchase order is a promise of future revenue — but a small supplier often can't buy the raw materials to fulfil it. Purchase-order (PO) financing closes that gap: it funds the supplier before delivery, against a confirmed order from a creditworthy buyer.
Pre-shipment, where the squeeze is worst
Invoice factoring helps after goods are delivered and the invoice is raised. PO financing sits earlier — pre-shipment — exactly where many MSMEs run out of cash. Advances are typically a share of the order value, often released in tranches as the supplier procures and produces, and repaid from the buyer's payment.
What makes a PO fundable
The evidence a lender weighs before committing:
- Buyer confirmation — a genuine, accepted order from a buyer who pays; the strongest signal of all.
- Active trade and capacity — GST status and filings, goods-movement history, and execution capacity (for example, EPFO headcount against turnover).
- Cross-line risk — buyer-supplier related-party or collusion patterns, duplicate or double-financed lines, and concentration to a single buyer — the patterns a per-PO view misses.
Signals, not sanction
AssureLocker surfaces these as evidence and risk signals and orchestrates the assessment room. It never approves credit, sets an advance rate, or moves funds — the lender owns every credit, pricing and sanction decision. See the evidence a lender reviews before funding a pre-shipment PO in the PO-financing demo.