Why Retail Expansion Stretches Your Cash

Retail success often hinges on your ability to quickly finance inventory for large purchase orders. But there’s a catch—retailers rarely pay upfront.

• Retailers issue purchase orders without immediate payment, meaning you need capital now to fulfill orders, but won’t get paid until months later
• Your co-manufacturer, on the other hand, usually requires partial or full payment upfront.
• Add in freight costs, packaging, palletization, and you’ve got a serious cash crunch.

If you’re selling DTC, you’re used to being paid before you ship. But retail flips that model upside down. And when a retailer gives you a shot, turning down an order because you can’t afford to fulfill it is a hard pill to swallow.

That’s why more brands are turning to PO financing — not to cover their entire business, but to strategically fulfill big retail wins.

How PO Financing Works – Step by Step

Let’s break down the typical process of PO financing so you can see how it fits into your supply chain:

1. Receive a Purchase Order (PO)

You land a PO from a retailer — this is the key starting point. No PO, no financing.

2. Apply for PO Financing

You share the PO, your production costs, and supplier information with a PO financing partner.

3. Financer Pays Your Supplier

Once approved, the financer sends payment directly to your co-manufacturer or supplier — covering raw materials, production, or both.

4. You Fulfill the Order

Your supplier produces the goods, you manage fulfillment, and the product ships to the retailer.

5. Retailer Pays the Financer

After the retailer receives the goods and completes their payment terms, they send the funds directly to the financing company.

6. You Get the Remaining Funds

The financer takes their agreed fee (typically a small percentage of the PO), and you receive the remaining profit.

This model removes the need for you to front tens or hundreds of thousands of dollars just to fulfill an order. Instead, the PO itself becomes your collateral.

Is PO Financing Right for You?

PO financing isn’t right for every situation, but when it fits, it can unlock a lot of growth potential.

✅ It’s a good fit when:

• You have a large, confirmed PO from a credible retailer
• Your margins can support the financing fee
• Your supplier is reliable and has clear production timelines
• You’re tight on cash but want to avoid raising equity or taking on long-term debt

🚩 It’s a red flag if:

• Your PO is speculative or not confirmed
• Your gross margins are very thin and not worth the financing costs
• You’re unsure about the retailer’s payment reliability

📄 What you’ll need to apply:

• A signed PO from a retailer
• Invoice or quote from your supplier or manufacturer
• Estimated delivery timeline
• Basic business financials

The Hidden Growth Lever: Why Smart Brands Use It

Let’s run through a quick example:

You get a $100,000 PO from a major grocery chain. Your co-manufacturer needs $65,000 to produce the order. You don’t have that kind of cash — but you also don’t want to give up equity or max out your credit cards.

With PO financing, a lender pays your manufacturer the $65,000. The goods ship. The retailer pays $100,000 after 60 days. The lender takes a 4% fee ($4,000), and you walk away with $31,000 in gross profit — without ever putting up the cash yourself.

PO financing is like jet fuel for your growth. It lets you scale into retail with less friction and more confidence — especially during critical stages of expansion.

🤝 Partner Spotlight: Bridge Marketplace

Bridge Marketplace is a game-changer for emerging brands looking to bridge the gap between opportunity and fulfillment.

Partner Spotlight: Bridge

Whether you’re gearing up for a big launch or smoothing out cash flow during a retail ramp-up, Bridge helps remove the friction from finding the right financing partner—so you can stay focused on growing your brand. One platform simplifying PO financing for CPG brands is Bridge. With a single loan request, you can get matched with your best lender option—all while keeping control over your information and connections. Originally born out of Citibank, Bridge has partnered with large retailers like Walmart, Dollar General, Best Buy and many others.

Bridge stands out for:

• A founder-friendly approach with no spam or pressure
• Human advisors that are experts in PO and understand the CPG landscape
• A seamless digital process to compare offers and fund quickly

Whether you’re gearing up for a big launch or smoothing out cash flow during a retail ramp-up, Bridge helps remove the friction from finding the right financing partner—so you can stay focused on growing your brand.

👉 Ready to Fill That Big PO?

Click below to get introduced to Bridge and find out if PO financing is the right move for your next retail opportunity.