New Purchase Order Financing Program For Contractors!

New Purchase Order Financing Program For Contractors!

Purchase Order Financing

Huntington Coast Capital is pleased to announce a new purchase order financing program for contractors! There are typically costs associated with the mobilization of a project. Contractors need to pay for a wide variety of expenses prior to their first invoice. Internal cash flow for contractors is often constrained due to capital being locked up in existing projects. Capital allocation becomes a key skill in managing the cash flow needs.

How is this program different than other purchase order funding programs? 

The mobilization funding program is a type of purchase order financing that provides our clients with working capital when they need it most — at the beginning of a project. We work with you to build a repayment schedule, so you pay us when you get paid. This is not your typical factoring or purchase order financing loan.

Benefits of the program.

This purchase order financing program for contractors solves the short-term cash flow shortage that comes with the cost of mobilizing on a new project. But, that’s only the beginning. Working capital and an accurate project cash flow schedule gives you peace of mind to make payroll, pay vendors, and perform great work with less stress!

How It Works.

This program is based on your contract, not your credit. Once we have your complete application and supporting documents, funding can be available as quickly as 5 business days. Repayment is typically within 5 months and aligns with the first two to three invoices paid on the project.

Requirements To Your Path to Funding (There is some flexibility on these requirements on a case-by-case basis).

  • In business for 2 or more years
  • Gross annual revenue of $1,000,000 or more
  • Three or more active projects at the time of the application being submitted

Initial items needed for the underwriting file.

  • Last 4 months of business bank statements
  • Last two year-end financial statements (balance sheet and income statement)
  • Current interim financial statement
  • Company tax returns for the past 2 years
  • Copy of the contract or purchase order in need of financing

General details of the program.

  • Loans up to 20% of the contract’s value can be utilized for the mobilization of a project
  • Repayment is typically 60 to 150 days
  • Repayment schedule is aligned with your customer payments to allow for sufficient cash flow throughout the life of the project
  • Funds can be utilized for any project related expenses such as direct labor, sub-contractor payments, materials, equipment rental, bonding, and more!
  • Program available for commercial contractors only, residential contractors and projects are not eligible

If your company could benefit from purchase order financing to mobilize your contract, give us a call at 844-239-2632 to discuss the details.

To your success!

Patrick Zazueta | Founder
Huntington Coast Capital, Inc.