The Process: Purchase Order Financing for Personal Protective Equipment

The Process: Purchase Order Financing for Personal Protective Equipment

Purchase Order Financing for PPE Products

Could you benefit from purchase order financing for personal protective equipment? Do you have purchase orders from credit worthy customers for PPE Products? Is a lack of capital holding you back from expanding your PPE business?  Do you have inventory in transit or a factory allocation? Huntington Coast Capital can help. 

The global pandemic has driven the need for PPE Products of all kinds including but not limited to:

  • nitrile gloves
  • face masks
  • face shields
  • hand sanitizer
  • gowns
  • COVID testing products
  • and more…

Huntington Coast Capital secures funding for manufacturers and distributors of personal protective equipment products. Our capital partners provide inspection services to verify all supplier allocations through onsite inspections of factories and allocation holders. In addition to inspections, all documentation in a proposed transaction is analyzed for authenticity. These added services provide more than just a pocket book for purchase order financing. Complete credit management and collection of customer payments is also managed. This allows the client the freedom to facilitate orders with the confidence of knowing they are in partnership with a world class credit management, quality control and financing partner.

Purchase Order Financing for Personal Protective Equipment

The Process 

Once the purchase order financing for PPE products is in place the lender follows these steps:

  • lender inspects all documentation involved in a transaction for authenticity (i.e. PO’s from end buyers, SGS reports, factory details, etc.)
  • once approved, the lender will pay the deposit to begin production directly to the factory
  • the lender pays the balance upon completion and inspection of the finished products
  • products are delivered by air or boat
  • products clear customs
  • the buyer is invoiced
  • the buyer inspects and accepts the goods and manages their logistics to the desired location (unless drop shipped)
  • the buyer either pays onsite or is granted terms for future payment (terms granted to credit worthy customers only)
  • the buyer makes their payment to the lenders lock box
  • the payment covers the amount advanced to the factory or allocation holder, the fund’s principle and all finance charges and fees
  • the cycle repeats

Items needed for preliminary underwriting of a purchase order financing request: 

  • complete contact information for the buyer(s) if not listed on the purchase order
  • complete contact information for the factory(ies) and allocation holder(s)
  • business entity documents for the client’s entity (i.e. Articles of Incorporation, Organization, etc.)
  • resumes/bios on the owners in the entity
  • Huntington Coast application
  • account receivable and payable aging reports (if applicable)

These items will give the fund enough to begin with their preliminary review. If the initial review is satisfactory, further conversations are had to go over the details in more depth.

The Huntington Coast Capital Advantage:

Unlike other direct lenders in the space, we are unbiased in our solutions. Direct lenders involved in Purchase Order Financing for Personal Protective Equipment have one product to present and sell – their own. We are not beholden to any particular lender. This unique advantage has earned us a reputation for unbiased consultation and proven results. Put the power of our industry knowledge to work for you today!

About Huntington Coast Capital: 

Established in 2009, Huntington Coast Capital has a seasoned tenure in the purchase order financing space. We have been assisting clients in traditional industries for over 10 years. When the COVID outbreak began back in early 2020 our focus shifted to purchase order financing for PPE products as the overwhelming majority of inquiries surrounded the space. In the past 12 months we have facilitated numerous transactions by bridging our PPE clients with the appropriate funding partner for their business.