Purchase order financing and invoice factoring are both forms of financing that help businesses suffering from cash flow issues.
The difference, between purchase order and invoice factoring, however, is that with purchase order financing, you’re receiving an advance of capital to fulfill a customer order when you currently don’t have the cash on hand to do so.
With invoice factoring, on the other hand, you’ve already completed and invoiced a customer for their order, and are receiving an advance of capital to cover cash flow issues while you wait for the customer to pay their invoice.
Use our guide to learn more about the differences between purchase order financing vs. factoring.