Interest rates for purchase order financing range between 1.8% and 6% per month.
Although some companies may charge a flat-rate, a tiered-interest rate structure is also common with purchase order financing, similar to some invoice factoring companies. Therefore, as an example, a company may charge a 3% rate for the first 30 days—and then increase the rate by 0.5% every 10 days.
Of course, the actual interest rates you receive for PO financing will depend on factors like the size of the purchase order, the company you work with, as well as your business’s qualifications.