What is Purchase Order (PO) or Invoice Financing (a.k.a Receivables Financing)?

As a company that is growing fast, you may find yourself winning larger and larger orders from your most valuable customers. In some cases, you may not have the working capital to fulfill the order. You need access to short-term financing to be able to pay your suppliers well before your customer pays you. Additionally, you may be tapped out of your unsecured credit facilities. This is where Receivables Financing comes in.

You can pledge your customer’s receivables to receive funding from Loop now. You can use these funds to pay your suppliers and buy the inventory you need to fulfill those important orders. And once you get paid by your customer, you pay Loop.

Once you have established this PO facility with Loop, you can reuse the facility as you get new orders from your customers.

Do you qualify for Receivables Financing with Loop?

There are 4 critical elements to qualify for Receivables Financing with Loop:

1. Your company needs to be in good financial standing. This includes not being in collections and not in insolvency or other financial hardships.
2. Your customer must be a well-established business with strong financials. Since Loop is taking on counterparty risk, your customer is ideally a large reputable company with $50M+ in revenues. 
3. You should have a signed master purchase agreement with your customer. 
4. Your customer’s payment to you is at least 45 days out. 

What is the pricing model for Receivable Financing with Loop?

We offer competitive pricing with the goal of supporting the growth of Canadian SMEs (small and medium enterprises). Here is our current offer:

Ready to get started? Click here for detailed instructions.

To download our handy 1-pager on Receivable Financing with Loop, click here.