Counted from the day the supplier is paid.
More options100% funded, 3% per 30 days
You keepestimate
$51,600
Of $60,000 gross profit on the order.
Total cost $8,400, 14% of your gross profit
Shown at 100% of the supplier cost funded and 3% per 30 days over 60 days. How fast your customer pays drives the cost.
Real terms come from your file, after underwriting.
Details: margin and break-even days
- Gross profit
- $60,000
- Financing fee
- $8,400
- Margin after financing
- 25.8%
- Fee as a share of gross profit
- 14%
- Days until the fee would equal the profit
- 428
Estimate with the fee and timing you chose. How fast your customer pays drives the cost. Running numbers here never touches your credit.
FAQ
Common Questions
How does purchase order financing work?
A funder pays your supplier for a confirmed order of finished goods. When your customer pays, the funder takes back what it paid plus its fee, and the rest of the order value is yours.
How is the purchase order financing fee calculated?
The fee is a percentage of the funded supplier cost for each 30 days, typically about 1.5% to 6% a month, prorated over the days from paying the supplier to your customer paying.
What margin does a purchase order funder look for?
Most PO funders look for 20% to 30% margins. The calculator shows your margin after financing and the share of your gross profit the fee takes.
What are the break-even days?
The number of days until the fee would equal your gross profit on the order. The further inside that window your customer pays, the more of the margin you keep.
Does the funder have to cover the whole supplier cost?
No. Set the share of the supplier cost funded and pay the rest yourself; the fee runs only on the funded part.