Best Non-Dilutive Purchase Order Financing for Founders (2025)

Purchase order (PO) financing is a working-capital tool that helps retail and CPG brands pay suppliers and produce inventory when they have real B2B demand but cannot wait for retailer or distributor payment timelines to play out. In practice, it is designed to bridge the gap between cash going out (supplier deposits, production runs, packaging MOQs, freight) and cash coming in (net terms, deductions, and delayed remittance).

At a Glance

What it solves: The timing gap created by net payment terms like net 30, net 60, and net 90, which delay cash collection even after you ship (JPMorgan on net terms; JPMorgan on net terms wording).
Where it fits: When your biggest cash need happens before shipment (co-man deposits, packaging, ingredients, freight, compliance).
How to think about it: Retail and CPG often get squeezed by the cash conversion cycle (CCC), which measures how long it takes to sell inventory, collect receivables, and pay bills (Investopedia: Cash Conversion Cycle).
Cost intuition: PO financing is commonly quoted as a time-based fee (for example, “X% per 30 days”). A simple example: a 2% fee per 30 days becomes 4% if the buyer pays in 60 days (NerdWallet: Purchase Order Financing).
SpringCash (supported facts only): PO financing, invoice factoring, and revolving working capital under a single subscription. Pricing is based on your maximum outstanding balance in a given month. Same-day funding when your bank is connected via Plaid. Minimum revenue of $1M. Month-to-month and cancel anytime. No additional fees. SpringCash pays suppliers directly for PO financing. NOAs required for PO financing and invoice factoring, but not for the working capital product. No blanket liens and no personal guarantees. No stated minimum or maximum size. Works with anyone who has a U.S. entity.

Who This Is For

PO financing (or a similar pre-shipment tool) is a fit when most of the below are true:

You have a real B2B order or a repeatable replenishment pattern, and you can document it cleanly.
Your cash goes out well before shipment (deposits, production runs, packaging MOQs, freight).
Your contribution margin after allowances and expected deductions can absorb financing costs.

Who This Is Not For

PO financing is usually the wrong tool if:

You need capital mainly for marketing spend, headcount burn, or long-horizon R&D rather than tied to near-term B2B cash-in.
Your post-deduction margin is thin or unpredictable.
Your operations are not yet consistent on compliance, routing, on-time/in-full, and dispute hygiene (small misses can become expensive fast).

Why Non-Dilutive PO Financing Matters in 2025

Retail and distribution growth is often constrained by working capital, not demand. Even if you are winning doors, velocity, and reorders, your cash can get trapped in the operating cycle:

Inventory and packaging pull cash forward.
Net terms push cash back (net 30, net 60, net 90 are common ways terms are expressed) (JPMorgan).
CCC stretches when you are holding more inventory and waiting longer to collect (Investopedia: CCC).

Key takeaway: PO financing can help you say “yes” to demand without raising equity, but the economics only work if your operations and documentation keep timelines tight.

Concrete Scenarios (Retail and CPG Reality)

These are common triggers for exploring PO financing, factoring, or a revolving working-capital facility:

You landed a Costco PO, but your co-man requires a 50% deposit. You have demand in hand, but cash needs to leave the building weeks before shipment.
UNFI or KeHE terms are stretching you. You are shipping, but cash is locked while you fund replenishment, packaging, and freight.
You need packaging inventory before a reset or promo window. Lead times and MOQs force a build ahead of receipts catching up.
Your cash-in is noisy due to deductions and chargebacks. Even if terms are clear, short-pays and post-audit activity create uncertainty and working-capital drag.

How PO Financing Works (Operationally)

Structures vary, but the basic sequence is consistent:

PO and economics review
- Confirm the buyer, the order, fulfillment requirements, and gross margin after realistic allowances and deductions.
Funding to support production
- Capital is used for supplier invoices, deposits, co-man runs, packaging, and freight, typically with controls.
Fulfillment and shipment
- Compliance matters: routing, labeling, OTIF, documentation.
Invoice and payment
- After shipment, you invoice and wait for payment under the buyer’s terms.
Repayment
- The financing provider gets repaid when the transaction cash-in occurs.

Where NOA can show up

In receivables-based structures, a Notice of Assignment (NOA) is commonly used to notify the buyer that payment should be sent to the financing party rather than the brand (Resolve Pay: NOA; eCapital: NOA in factoring).

How SpringCash executes (supported facts only)

SpringCash pays suppliers directly for PO financing.
SpringCash requires NOA for PO financing and invoice factoring, but not for the revolving working-capital product.
SpringCash provides same-day funding when the brand’s bank is connected via Plaid.
SpringCash has no blanket liens and no personal guarantees.

How Much Does PO Financing Cost?

Founders should focus on two things: (1) the fee basis, and (2) how time affects total cost.

Many PO financing structures are quoted as a fee per time period (often described as a percentage per 30 days). A simple illustration: if the fee is 2% per 30 days, then a 60-day buyer payment timeline results in 4% total fees on that financed amount (NerdWallet).

A simple way to model it

Input	What to estimate	Why it matters
Time to cash	30 vs 60 vs 90+ days	Time directly drives total fees in time-based pricing
True margin	Margin after allowances and expected deductions	Determines whether financing helps or hurts contribution margin
Operational risk	Likelihood of delays, disputes, chargebacks	Delays and disputes can extend time-to-cash and raise total cost
“All-in” structure	Any fees beyond the headline rate	Small extra items can matter on smaller POs

How SpringCash pricing works (supported facts only)

SpringCash pricing is based on the maximum outstanding balance the brand has with SpringCash in a given month, across PO financing, invoice factoring, and revolving working capital, under a single subscription. The subscription is month-to-month and can be canceled at any time. There are no additional fees.

PO Financing vs Factoring vs Revolving Working Capital (Decision Framework)

Founders often choose the wrong tool because they start with “how much can I get?” instead of “what part of the cycle am I funding?”

Quick checklist

Do I need cash before shipment to pay suppliers and produce inventory?
- Start with PO financing.
Have I already shipped and issued an invoice, and I just need cash while waiting for payment?
- Start with invoice factoring (or another receivables-based tool).
Do I want ongoing access instead of one-off deals, because demand is repeatable?
- Explore a revolving working-capital facility.

Simple comparison table

Tool	Best for	Where it helps	Common tradeoffs
PO financing	Funding production and fulfillment tied to a real PO	Pre-shipment	Documentation heavy; costs rise if timelines slip
Invoice factoring	Turning shipped invoices into cash faster	Post-shipment	May require NOA in many structures; deductions can complicate reconciliation
Revolving working capital	Repeatable access across cycles	Ongoing	Underwriting up front; rules may govern usage

One-subscription approach (SpringCash)

If your goal is to avoid stitching together multiple providers as you scale, SpringCash offers PO financing, invoice factoring, and revolving working capital under a single subscription, with pricing based on monthly maximum outstanding balance (supported facts).

Pitfalls to Watch

PO financing can be high-leverage for growth, but it has predictable failure modes in retail and CPG.

Timeline slippage
- Production delays, routing misses, compliance issues, or dispute cycles can extend time-to-cash, which raises total cost in time-based structures (NerdWallet example).
Underestimating deductions and chargebacks
- Model conservatively. If you assume clean remittance but reality includes short-pays, you can create cash gaps at exactly the wrong time.
NOA operational friction
- If your structure requires NOA, plan for the operational and relationship work. NOA exists to direct payment rights to the financing party (Resolve Pay).
Using the wrong tool for the job
- PO financing is a supply and fulfillment tool. It is usually a poor fit for marketing burn or general runway extension.
Growing broke
- Financing low-margin volume can grow topline while shrinking contribution margin. Always model post-deduction contribution after financing cost.

Closing CTA: SpringCash for Retail and CPG Working Capital

If you are a retail or CPG brand with at least $1M in revenue and a U.S. entity, and you need capital to fulfill POs, accelerate invoice cash, or access revolving working capital without long-term lockups, SpringCash is structured around:

One subscription covering PO financing, invoice factoring, and revolving working capital
Pricing based on monthly max outstanding balance
Month-to-month, cancel anytime
Same-day funding when your bank is connected via Plaid
Supplier payments direct for PO financing
NOA required for PO financing and invoice factoring (not required for the working capital product)
No personal guarantees, no blanket liens
No additional fees
No stated minimum or maximum size

Learn more: https://www.springcash.com/

Frequently Asked Questions

What is non-dilutive purchase order financing?

Non-dilutive purchase order financing is a commercial funding method that allows businesses to access cash needed to pay suppliers for large customer orders without giving up equity. The advance is secured by the purchase order itself, enabling founders to retain full ownership.

How does purchase order financing work?

When a customer places an order that exceeds a company's cash flow capacity, a PO financing partner pays the suppliers directly. The company fulfills the order, ships the goods, invoices the customer, and repays the lender once the retailer pays. This cycle typically runs 30 to 90 days.

What are the costs associated with purchase order financing?

Costs for purchase order financing include a monthly fee on the financed amount, typically ranging from 1.5% to 6%, along with additional administrative and due-diligence fees that vary by lender. It's important to request a full fee table before signing any agreements.

Why do founders prefer non-dilutive capital?

Founders prefer non-dilutive capital because it allows them to maintain full ownership of their company. Unlike equity financing, which dilutes ownership, non-dilutive financing charges fees instead of taking equity, making it a more attractive option for growth without losing control.

What should founders consider when choosing a PO financing partner?

Founders should confirm that the lender does not take equity or warrants, request a full fee schedule, evaluate repayment flexibility, check platform integrations, assess customer-credit focus, and review funding limits to ensure the financing partner aligns with their business needs.

How does Spring Cash support founders with non-dilutive financing?

Spring Cash offers subscription-based working capital access with no scheduled principal payments, no warrants, and no long-term lockups. Their capital structures are designed to support growth rather than extract value, providing one of the lowest effective-cost growth capital options for retail and CPG SMBs.