Use case

Funding a large purchase order: how to size it and what to watch.

A big order can require materials and labour long before payment.

✓ Checking what you qualify for does not affect your credit score.

How should you fund a large purchase order?

Short answer: Confirm the order in writing, price the materials and production costs and map when the customer will actually pay. Purchase order financing, repaid when the customer pays, suits product orders from creditworthy customers; a short advance suits mixed costs. Make sure the order's margin covers the funding cost.

Key facts

Get the order in writing
Map costs against customer payment
PO financing suits product orders
The margin must cover the funding cost

What this looks like

A big order can require materials and labour long before payment.

A customer places an order larger than usual. Materials and labour must be paid before the order ships and is paid for.

How to size it

Fund the materials and labour for the order, not more.

Illustrative arithmetic

A custom apparel company depositing about $60,000 a month asks for $25,000 for materials on a corporate order. At a 1.22 factor the payback is $30,500, a cost of $5,500. Over roughly 5 months that is about $290 per business day, or close to 10% of monthly deposits.

Total payback: $30,500.
Cost: $5,500.
Payment: about $290 per business day, close to 10% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Which structure tends to fit

Purchase order financing or a short advance; compare costs.

Where it goes wrong

Customer cancellation
Thin margin on large orders
Delivery delays

Before you apply

Confirm the PO in writing
Check customer credit
Calculate margin

Typical starting points

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

Ask for a deposit

Many customers will pay a deposit on large orders; it reduces the funding needed.

Before you commit

Check the customer's payment history and creditworthiness before committing materials. A large order from a customer who pays slowly or disputes invoices can strain cash more than it helps.

Talk it through

Merchant Fund Express reviews Canadian businesses in every province and territory. If you would like a specific answer for your business rather than general guidance, send a signed application and your last four months of business bank statements, or call (305) 384-8391 first to ask a question.

Sources and review

Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.

Common questions

How much should I ask for?

Ask for the amount you can name in dollars and tie to a quote, invoice or schedule. A smaller, specific request is easier to approve and cheaper to repay.

Which structure is best?

It depends on whether the need is a one-time purchase or a recurring gap. See the comparison pages for the trade-offs.

How fast can I get it?

Decisions are often the same day on a complete file, and funding can follow the next business day.