Billd Teams Up with American Express to Help Suppliers Extend Flexible Finance Terms Across U.S. Construction Industry
A financing method where a lender pays the supplier directly for materials, and the contractor repays the lender once the project is completed and invoiced
In this financing method, a lender pays the supplier directly for the materials or goods required to fulfill a purchase order from a customer. This allows the contractor or business to obtain the necessary inventory without having to use their own cash upfront. Once the project is completed and the goods are delivered, the contractor invoices the customer. Upon receiving the payment, the contractor then repays the lender, often including a fee for the financing provided.
A contractor may secure a large project but lacks the funds to purchase necessary materials, so they use Purchase Order Financing to have the lender pay the supplier directly, allowing them to fulfill the order without upfront capital.
