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Playbooks 6 min read Updated July 1, 2026

You Just Landed a Huge Order. Now What?

A big first order from a national distributor, OEM, or retailer is the best problem and the fastest way to blow up cash flow. Here's how funding usually comes together when a shop calls with 'we just won something we can't afford to deliver.'

Confirm the order economics before anything else

Gross margin, delivery schedule, payment terms, freight terms, and any chargeback/markdown provisions. A 22% margin on paper often becomes 12% after retailer chargebacks—know that before you commit funding.

Fund the materials

PO financing pays your suppliers directly against the confirmed order. Requires 20%+ gross margin and a creditworthy end buyer. Closes in 2–3 weeks.

Fund the production ramp

Working capital or a factoring facility on your existing book covers labor, overhead, and any material gaps not covered by the PO facility.

Fund the receivable

The moment you ship and invoice, factor the invoice for 85–90% advance. Factoring proceeds pay off the PO facility at delivery. You keep the margin.

Plan the second order

The moment you deliver the first order, the second one is coming. Structure the facilities for repeatable capacity, not just this one deal.

Frequently Asked Questions

First-time stack: 3 weeks. Repeat: within a week.

PO financing usually doesn't work at 15%. We look at direct factoring plus supplier deposits, or negotiate the buyer's terms to reduce upfront material need.

If you have an existing bank line, yes — most bank covenants require disclosure of new secured facilities. We coordinate with the bank on intercreditor terms so the PO and factoring lines don't conflict with your existing debt.

PO amendments are common. The financing follows the amended PO as long as the buyer confirms it in writing. Cancellations without a written change order are the real risk, and funding partners document around that exposure.

Yes, in most cases. An intercreditor agreement between your bank and the PO/factoring funders defines who has priority on what collateral. Done cleanly, all three facilities operate in parallel.

Keep reading

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Funding Requirements Checklist for US manufacturers

See exactly what underwriters actually look at — for factoring, PO financing, equipment, working capital, ABL, and SBA — before you fill out a single application.

  • What documents you need for each program
  • Typical time-to-fund by program
  • Common disqualifiers worth knowing up front
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