A supplier to pay in advance: what can be presented?
A supplier to pay in advance or a deposit on an order is a common working-capital need. You describe the need; the lender judges the file from the money your business takes in.
Choose my amountThe answers
- Can paying a supplier or a deposit on an order be financed?
- Yes, this need is presented as working capital, sized on what your business takes in. The lender sets the amount and its cost in its written offer.
- Does the lender pay my supplier directly?
- With revenue-based financing, the sum is disbursed to the business, which pays its supplier. How the sum is disbursed is written in the lender’s offer.
- Do I need to show the purchase order or the supplier’s invoice?
- That document helps describe the need, but it is not enough by itself. The lender reads first what the business already takes in.
- The order is for equipment: is it the same file?
- No: equipment is presented as equipment financing, from the supplier’s quote. The lender may ask for a down payment, which it sets in its written offer.
- The need comes back with every order: which product?
- A line of credit answers a need that comes back, if the file supports it. It usually asks for more time in business and a stronger credit score, at the lender’s discretion.
What the lender looks at
- Actual deposits, month by month
- The lender sizes the order against what the business takes in.
- Trend over the period
- Sales that climb support a larger order.
- NSF cheques
- A payment returned to this supplier or another shows in the statements.
- Payments to other lenders
- Commitments already running come before the new order in the lender’s reading.
$0 upfront · 7% only if funded
An intermediary, not a lender.
The lender sets the final amount and its cost in its written offer.
Choose my amount