Purchase Order Financing
FinShare PO Financing module (POF) is used to provide pre-shipment financing to the customers. The product can be configured to be either Buyer centric or Supplier centric. FinShare-POF provides a powerful entry into supply chain financing by capturing the customer’s business at the early stage.
PO has pre-shipment financing based upon the Purchase Order and/or Pro-Forma Invoice generated upon approval by the seller. The module can be integrated with a customer’s ERP system so that PO and shipment information can flow into FinShare and be processed seamlessly and automatically.
1. Buyer submits purchase order.
2. Seller requests pre-shipment finance.
a) Bank approves financing request.
b) Bank funds Seller.
4. Seller ships goods to Buyer. (At this stage, Buyer may provide Goods Received Notice (GRN) to Bank via FinShare).
5. Bank debits Seller at maturity.
After Purchase Order Financing, the Seller can continue to Receivable Financing, or the transaction may be completed with direct payment.