Purchase Order is a numbered sales order document issued by a Buyer to a Supplier for delivery of good and performance of work. The document contains information about goods/works, list of goods (description, code, quantity, price, dimensions), certification data, and agreement terms.
Purchase Order Financing: Financing of a Purchase Order submitted by a Buyer to a Supplier (Customer). The Supplier turns to the Bank for financing in order to fulfil the Buyer's order and the Bank finances the Supplier based on the provided PO. Upon completion of work the Supplier shall present the Invoice, Handover note for completed works and other relevant documents to the Bank.
• The Supplier can direct current assets to other important expenses
• Contributes to trust-based cooperation between the Supplier and the Buyer
• There is no need to request an advance payment for works from the Buyer, which increases the flexibility of the supplier to provide competitive payment terms
• Protects the Supplier from currency risks
• The Supplier's debts are managed by the Bank.