Purchase Order Financing Calculator
Expensive money for an order you could not otherwise take.
Financing fee
$5,760
36.5% annualised
A 3% monthly fee is 36.5% annualised — expensive money by any normal standard, and entirely rational if it lets you take an order you could not otherwise fulfil. The comparison is against not having the order, not against a bank loan.
How the Purchase Order Financing Calculator works
A 3% monthly fee is expensive by any normal standard and entirely rational if it lets you fulfil an order you could not otherwise take. The comparison is against not having the order, not against a bank loan.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is purchase order financing?
A financier pays your supplier so you can fulfil a confirmed customer order, and is repaid when the customer pays. It is secured on the order rather than on your balance sheet.
What does it cost?
Commonly 2% to 5% per 30 days on the financed amount. On a 75-day cycle that is a substantial share of the gross profit on the order.
When does it make sense?
For a confirmed order from a creditworthy customer that you could not otherwise fund. Using it for speculative stock purchases is a different and much worse proposition.
What are the requirements?
A confirmed purchase order, a supplier the financier will pay directly, and a customer they consider creditworthy. Margins usually need to be healthy enough to absorb the fee.