Bibby Financial Services Sees Purchase Order Financing Volumes Rise; Demand for Electronics and Apparel Edge Forward

ATLANTA--(BUSINESS WIRE)--‘Tis the season for companies to be placing their orders for the things that people will want to buy in December. But are they?

“We are seeing an uptick in purchase order finance”

“We are seeing an uptick in purchase order finance,” said Ian Varley, managing director of Bibby International Trade Finance, a subsidiary of Bibby Financial Services, “and that could be a positive omen for holiday shopping. The numbers for the summer months are still quite weak and nobody is expecting this holiday season to be a record sale year. But we do feel the overall mood among our clients is improving. We do want to believe that people will still buy presents for the holidays, don’t we?”

Purchase order finance is a particularly important financing tool used by suppliers who have bona fide orders for finished goods that will be drop shipped to suppliers. As another solution for companies facing cash flow crunches, purchase order financing enables companies to survive the ebbs and flows of business, by allowing them to continue to meet the demands of their customer so they can manage their businesses successfully.

“Because purchase order finance requires specialist knowledge and high service levels, very few financing companies provide it,” Varley said. ‘It requires an understanding and careful review of documents and paperwork, with attention to details. For instance, if we are financing uniforms for a company, we need to inspect the finished products to make sure they fit specifications and are of the required quality.”

In purchase order finance, a company with a confirmed order for goods will use the financing to help pay for the cost of fulfilling the order. Bibby Financial Services will purchase the goods from the supplier on behalf of its client and fund the transaction. Once the goods are delivered, the customer will be invoiced and the advance will be paid down.

“So far we have seen purchase order finance edge upwards in the electronics industry and some apparel,” Varley said. “The bottom line is stores do have to stock their shelves, orders do need to be placed and everyone is keen to find a way to get business rolling.”

Bibby Financial Services is a worldwide market leading specialist of business cash flow solutions to small and medium-sized enterprises. With offices in 10 North American cities and 27 countries around the world, its product portfolio includes receivables finance, factoring, export finance, purchase order finance, specialist solutions for the staffing and trucking sectors, and it is an approved lender for the Export-Import Bank’s working capital guaranty delegated authority program. . Bibby Financial Services is a subsidiary of The Bibby Line Group, a 202 year-old privately held company based in the United Kingdom.

For more information on Bibby Financial Services, visit: www.bibbyusa.com, or on Facebook at: www.facebook.com/bibbyfinancialservices.northamerica

For expert advice on small business, please visit CEO Stewart Chesters’ blog at: www.bibbyusa.com/ceoblog