You’re tired of watching seasonal sales slip away while banks drag their feet, right? PPPO funding companies like Hilldun Corporation, King Capital, Star Funding, and Rosenthal will finance your purchase order before production even starts. They typically cover 75-85 percent upfront, keeping your cash flowing and your suppliers satisfied.
Companies like Liquid Capital and Southasta Capital specialize in peak times, presenting quick approvals conditional upon purchase orders rather than credit.
The best section? You will discover which firms coordinate with your company’s specific needs when investigating your options further.
Key Takeaways
- PO funding provides upfront capital to suppliers, solving seasonal cash flowThe net amount of cash moving in and out of a business. gaps without diluting business equity.
- Top providers like Hilldun, King Trade Capital, and Star Funding offer fast approvals tailored for apparel brands.
- Lenders prioritize consistent order fulfillment history and strong supplier relationships as key approval criteria.
- Funding typically covers 75-85% of invoice amounts, enabling businesses to complete production before retailer payments arrive.
- Digital integration, AI forecasting, and revenue-based financingFinancing where investors receive a percentage of future gro represent emerging solutions for seasonal funding applications.
The Seasonal Cash Flow Challenge: Why Apparel Brands Struggle
When you’re operating an apparel brand, the money math doesn’t always add up, especially when your best-selling season hits right as your bank account’s hitting empty. You’ve got orders rolling in, but your cash is stuck in accounts receivable while factories need payment upfront. This is the seasonal cash flowThe net amount of cash moving in and out of a business. management nightmare that keeps founders awake at night.
Your fixed costs, rent, salaries, utilities, don’t pause when sales slow down. Neither do your suppliers. Implementing data-driven demand forecasting through models like ARIMA or Holt-Winters can help you predict these cash flowThe net amount of cash moving in and out of a business. gaps weeks in advance. Access to short-term construction loans with flexible terms could provide temporary relief to bridge these critical cash flowThe net amount of cash moving in and out of a business. periods.
Fixed costs keep ticking. Suppliers keep demanding payment. Revenue doesn’t follow the same schedule.
That’s where apparel inventory financing and funding for garment manufacturers become lifelines. Traditional banks won’t touch you during off-season dips, even though you know a profit surge is approaching.
You need partners who comprehend that your “feast or famine” cycle isn’t risky, it’s predictable. Smart funding resolves this timing problem so you can actually capitalize upon trends instead of chasing them.
How Purchase Order Funding Solves The “Pre-Season” Gap
When you’re racing to fulfill a viral order or prepping for holiday season, you can’t afford waiting for traditional bank approvals, and that’s where PO funding steps in to bridge the gap between your design sketches and actual delivery.
You get upfront capital that flows directly toward your manufacturers and fabric suppliers, so you’re not draining your bank account while waiting for customer payments to roll in. This non-dilutive funding approach means you retain full equity in your business while accessing the capital you need.
Whether you’re scaling for a TikTok moment, stocking up for peak season, or fronting deposits to international factories, that type of financing lets you move swiftly without betting your business on a credit card or a loan officer’s timeline.
Bridging The Gap Between Design And Delivery
As your design team’s sketches change into fabric samples and production timelines, you’re already facing a problem that traditional banks don’t quite get: you’ve got a massive retailer order locked in, but your cash is still stuck in last season’s accounts receivable.
Here’s where seasonal business loans and textile production loans become game-changers. PO financing bridges this gap by funding your entire production cost upfront, typically 75-85% of your invoice. You’re not waiting for retailer payments anymore.
Instead, your apparel supply chain credit flows directly to suppliers and manufacturers, letting you hit production deadlines without depleting your reserves. The purchase order financing market is projected to grow to 12.9 billion by 2033, reflecting increasing demand from businesses like yours managing seasonal cash flowThe net amount of cash moving in and out of a business. challenges.
This isn’t just about survival, it’s about seizing momentum. When opportunity knocks with a major order, you’re ready to answer, not scrambling for capital you don’t have.
Scaling For Viral Trends And Holiday Peaks
Your TikTok video just hit 2 million views, and suddenly you’ve got purchase orders stacking up more quickly than you can process them, but here’s the catch: you don’t have the cash to fund production, and your suppliers aren’t going to wait around while you drum up capital.
This is where a PO funding solution becomes your secret weapon. Instead of scrambling for months, clothing brand funding 2026 options let you access capital directly tied to confirmed orders. By partnering with purchase order finance providers, you maintain strong supplier relationships through timely upfront payments while preserving your company’s equity during growth phases.
Lenders pay your suppliers upfront, covering 70-80% of the invoice, so you’re not draining your reserves during peak demand. It’s fashion industry trade finance that actually moves at internet speed, letting you capitalize on viral moments before they vanish. You scale without the financial stress.
Funding International Manufacturing Deposits
Before you can fill that massive wholesale order, your manufacturer in Vietnam needs cold, hard cash, and they need it immediately. That’s where PO funding steps in.
You’re holding a confirmed purchase order, but your Q4 inventory capital is tied up elsewhere. Purchase order financing covers those upfront deposits for fabrics, dyes, labor, and shipping that manufacturers demand before production starts. Unlike traditional bank loans, PO financing provides easier access to capital for businesses facing these pre-production gaps.
Your boutique wholesale financing partner pays the supplier directly, so you’re not draining your operational reserves. You secure timely deposits with manufacturers, strengthen those critical relationships, and keep production moving without interruption.
The result? You accept larger orders confidently, scale more quickly, and actually make your seasonal deadlines instead of watching them slip by.
15 Best PO Funding Companies For Seasonal Businesses Reviewed
You’ve got five powerhouse players in the PO funding arena, each bringing something different for seasonal apparel brands. Hilldun Corporation brings serious credibility in fashion circles by leveraging AI-driven automation to streamline approval workflows. King Trade Capital handles those tricky international production deposits. Star Funding’s got your finished goods locked down.
Rosenthal & Rosenthal combines factoringSelling accounts receivable (invoices) to a third party at a with PO funding into one smooth package. If you’re trying to blast through a peak season without leaving money off the table, SouthStar Capital’s rapid scaling capabilities might be exactly what you require in order to outpace the competition. These providers typically offer quick access to funds ensuring you can fulfill large seasonal orders on time and maintain strong customer relationships.
Hilldun Corporation: Best For Fashion Industry Authority and Credit Protection
When a swimwear brand lands a massive Saks Fifth Avenue order but faces 90-day payment terms, that’s when Hilldun Corporation steps in, and they’ve been doing that since 1958. This family-owned powerhouse doesn’t just fund your purchase orders; they’re practically fluent in fashion’s cash flowThe net amount of cash moving in and out of a business. language.
Their secret? They’ve built genuine relationships with the retailers you’re selling to. They understand which department stores actually pay in a timely manner and which ones drag their feet.
That understanding lets them approve orders more quickly than traditional lenders ever could. Additionally, their credit protection guarantee means you’re not left hanging if a retailer stalls payment. The company operates globally in multiple currencies, enabling seamless international transactions for brands selling across borders.
With integrations into apparel software like AIMS360, funding flows automatically after you ship. You’re not just getting money, you’re getting a partner who genuinely gets seasonal retail’s feast-or-famine reality.
King Trade Capital: Best For International Apparel Production Deposits
While Hilldun Corporation excels at navigating domestic retail relationships and payment terms, there’s a whole different beast when your factory sits thousands of miles distant in China or Vietnam, and they’re not going to wait around for your US customers to settle up.
King Trade Capital specializes in exactly that scenario. They’ve financed $22 million in import deposits for apparel companies, accelerating factory payments 30-60 occasions after shipment.
They understand that your Portuguese manufacturer won’t budge until funds hit their account, regardless of your stellar TikTok metrics.
What makes them different? They structure repayment through shipping documents and partner with your accounts receivable factor, turning international production timelines from a headache into a competitive advantage.
You’re no longer choosing between factory relationships and cash flowThe net amount of cash moving in and out of a business..
Star Funding: Best For Finished Goods Procurement In Consumer Markets
Star Funding cuts through the noise for seasonal inventory hell with a straightforward answer: they finance your finished goods the moment they’re ready for ship. You’re not waiting weeks for traditional lenders to decide if your inventory’s “worthy.” Instead, Star Funding evaluates your actual customer orders and gets capital into your account swiftly, sometimes within moments.
They understand consumer markets move at lightning speed. Your finished goods are sitting in a warehouse, and every moment they’re there costs you money. Star Funding sees this reality and funds accordingly, letting you push inventory out to retailers without draining your reserves.
You fill orders, collect revenue, and repay from those proceeds. No constant cash-flow panic. Just momentum.
Rosenthal & Rosenthal: Best For Integrated Apparel Factoring And PO Funding
If you’re managing an apparel brand and juggling both purchase orders and accounts receivable, you’ve probably noticed that most funding companies choose a lane and stick with it, but Rosenthal & Rosenthal does both concurrently. This 80-year-old firm specializes in the exact chaos you’re living through.
Here’s what sets them apart:
- Dual funding capability, PO financing for production along with factoringSelling accounts receivable (invoices) to a third party at a for your receivables simultaneously
- 100% advance rates concerning cost of goods, freight, duty, and logistics
- Non-recourse options that let you maintain customer relationships without collection drama
- Apparel-specific proficiency spanning wetsuits, outerwear, women’s wear, and accessories
They’ve funded $280 million across apparel deals, so they actually get seasonality. You’re not explaining your business model; they’re already living it.
SouthStar Capital: Best For Rapid Scaling During Peak Seasonal Windows
Most PO funding companies move at the speed concerning bureaucracy, but SouthStar Capital moves at the speed regarding your TikTok trend, which means they’re actually useful when circumstances require. You’ll get approval and funding in moments, not weeks, so you can capitalize on demand spikes without watching opportunities evaporate.
| Funding Range | Timeline | Best For |
|---|---|---|
| $100K–$2M | 3–5 moments | Seasonal peaks |
| Combined PO/A/R | Immediate | Scaling quickly |
| $4M+ facilities | Moments | Major retailers |
Their relationship-driven approach means you’re not talking to an algorithm. You’re talking to decision-makers who understand apparel’s feast-or-famine cycle.
They’ll manage your entire fulfillment process, handling everything from production verification to delivery. Then they shift you effortlessly to accounts receivable financing, reducing your costs while you wait for customer payments. That’s how you stay ahead.
1st Commercial Credit: Best For Global Trade And Overseas Garment Sourcing
When you’re sourcing apparel from Vietnam, Portugal, or Bangladesh, you’re playing a completely different funding game than domestic brands. 1st Commercial Credit gets this, they’ve built their entire operation around international trade financing for USA-based importers like you.
Here’s what they bring to the table:
- Overseas supplier payments funded without draining your working capital
- Logistics and import duty fees wrapped into one efficient PO financing package
- Rates from 1.5% to 5%—genuinely affordable compared to traditional loans
- Supply chain coverage spanning raw materials, labor, and finished goods
You’ll need two years in business and current receivable factoringSelling accounts receivable (invoices) to a third party at a, but once you’re approved, you’re released. Your factory gets paid on schedule. Your cash stays put. You’re ultimately free to scale without that constant offshore payment anxiety.
Kickfurther: Best For Inventory-Led Crowdfunding For Emerging Brands
Now here’s where things get interesting for emerging brands that don’t have years in international sourcing under their belt. Kickfurther flips the traditional funding game in its head with inventory led crowdfundingRaising small amounts of money from a large number of people that actually gets you cash when you need it most.
Here’s the deal: you’re not taking on debt or giving up equity. Instead, backers fund your inventory directly to manufacturers, and you don’t pay them back until your products sell. We’re talking funding from $5,000 to $5 million with custom payment schedules stretching one through ten months.
The platform’s track record speaks volumes. SODO Apparel raised nearly $258,000 in just six occasions for major retailers.
Since launching in 2015, Kickfurther’s funded over $8 million across 300 opportunities for 240+ companies.
What makes this genuinely perfect for seasonal businesses? You restock before payments hit, supporting multiple inventory cycles without cash flowThe net amount of cash moving in and out of a business. nightmares.
Milberg Factors: Best For Specialized Fashion Credit Management
If you’ve been in the apparel game long enough, you’ve probably heard whispers about Milberg Factors, the kind of company that’s been solving fashion cash flowThe net amount of cash moving in and out of a business. problems since your grandparents were buying their premier pair of jeans. They’re not your average lender. They get seasonal brands because they’ve literally been doing this since the early 1900s.
Here’s what sets them apart:
- Credit protection that absorbs your risk so you don’t have to stress
- Multiple factoringSelling accounts receivable (invoices) to a third party at a types, advance, collection, even non-notification options
- Fashion-specific proficiency across apparel, accessories, and footwear
- Customized solutions that actually fit your brand’s unique timeline
They handle everything from receivables to import financing. When you’re riding a viral trend and need cash immediately, Milberg’s seasoned team moves swiftly.
They’re the infrastructure behind brands that turn momentum into market dominance.
Merchant Financial Group: Best For Boutique Brands With High Growth Potential
You’ve probably noticed that boutique apparel brands operate in a different universe than their corporate counterparts, and Merchant Financial Group gets that. They specialize in PO financing built specifically for your growth path, not some one-size-fits-all banking template.
What makes them different? They don’t require collateralAn asset pledged by a borrower to secure a loan, subject to. Instead, they base funding decisions upon your customer credit and order potential. You secure letters of credit with factories, kickstart production immediately, and preserve your cash for what actually matters, scaling your brand.
Whether you’re launching wearable tech, expanding into new retail partnerships, or riding a viral trend, Merchant Financial Group scales alongside you. Their track record with brands like Arctix and American Exchange proves they understand the seasonal crunch.
You get capital when you need it, structured around your specific orders rather than your balance sheetA financial statement summarizing a company's assets, liabil.
Liquid Capital: Best For Speed In Funding Holiday Inventory Surges
While Merchant Financial Group excels at nurturing boutique brands through steady growth, there’s a different animal altogether when November hits and your retailers are screaming for holiday stock. That’s where Liquid Capital alters the game.
This North American leader funds up to $10 million and covers 100% of your product costs the moment your PO gets approved. You’re not waiting around twiddling your thumbs, you’re moving.
Here’s what makes them the quick champion:
- Instant inventory purchasing without depleting your cash reserves
- Letter of creditA bank guarantee ensuring a buyer's payment to a seller will setup with suppliers in record time
- 24/7 online reporting so you’re never in the dark
- Seamless A/R factoringSelling accounts receivable (invoices) to a third party at a integration that pays off your PO once customers pay
No long-term contracts. No headaches. Just capital that moves as quickly as your trends do.
Hana Financial: Best For Textile And High-Volume Garment Manufacturing
When your garment factory in Bangladesh or Vietnam is ready for spin up production but your bank account’s looking sparse, Hana Financial steps in as the heavy hitter you’ve been needing.
As one of the top ten U.S. factoringSelling accounts receivable (invoices) to a third party at a companies with over $1.5 billion in annual volume, they’ve excelled in the textile game for decades. They’ll fund your raw materials, labor, and shipping before you see a dime from customers, meaning you’re never stuck waiting.
Their PO financing requires zero collateralAn asset pledged by a borrower to secure a loan, subject to or equity surrender, just solid customer credit. You scale your high-volume orders without depleting reserves. For seasonal apparel brands juggling feast-or-famine cycles, Hana’s proficiency converts production delays into competitive advantages, keeping your fulfillment velocity running strong.
SMB Compass: Best For Small-To-Mid-Market Seasonal Business Needs
If your apparel brand’s got solid orders but your bank account’s running in fumes, SMB Compass is built exactly for that scenario. They’re the fuel that lets you say yes for growth without draining your reserves.
Here’s what makes them stand out:
- Direct supplier payments – They fund your manufacturers upfront, so production starts immediately
- Order-based approval – Your customer contracts matter more than your credit score
- Seasonal scaling – Ramp from $50K to $1M in funding within a single season
- Fast capital access – Get liquidityThe ease with which assets can be converted into cash. when trends peak, not six weeks later
You’ll maintain timely production, potentially score supplier discounts, and actually fulfill those viral TikTok orders. SMB Compass converts cash flowThe net amount of cash moving in and out of a business. chaos into competitive advantage for growing brands.
CIT Commercial Finance: Best For Large-Scale Retail And Apparel Distribution
CIT Commercial Finance operates in a completely different league than most PO funding companies, they’re the heavy hitters backing massive retail operations and apparel distributors who move millions in inventory every season. As a First Citizens Bank subsidiary, they’ve got the muscle to allocate up to $100 million in customized financing solutions designed specifically for your apparel business.
What sets them apart? They understand your world. They’ve financed companies supplying Target, Walmart, and Amazon, so they know exactly how seasonal cash crunches work.
Their factoringSelling accounts receivable (invoices) to a third party at a and supply chain finance services accelerate your receivables while you’re waiting for those massive retailer payments to land. They’ll handle your international imports too, so your Portugal factory gets paid while you’re still fulfilling orders. For large-scale operations, they’re genuinely your shortcut to growth without the wait.
Prestige Capital: Best For Early-Stage Brands With Major Retailer POs
You’ve landed that dream purchase order from a major retailer, the kind that could put your brand on the map, but here’s the catch: you’re flat broke.
Prestige Capital gets it. They’ve been funding growth since 1985, specializing in exactly this scenario. Here’s what makes them different:
- No traditional bank gatekeeping, they skip the tax returns, financial statements, and personal guarantees
- Lightning-fast liquidityThe ease with which assets can be converted into cash., invoice advances hit your account quickly so you can pay suppliers immediately
- Flexible funding lines, scale from $50K to millions as your orders grow
- Risk assumption, they take the credit hit, not you
They’ve backed early-stage brands securing $10MM retailer POs with just $1MM in annual sales.
Your balance sheetA financial statement summarizing a company's assets, liabil doesn’t matter; your fulfillment velocity does. That’s how you stop chasing trends and start setting them.
White Oak Commercial Finance: Best For Massive Seasonal Credit Facilities
When your seasonal business needs aren’t measured in thousands but in tens than millions, White Oak Commercial Finance is the heavyweight player that actually answers the phone. They’ve arranged massive credit facilities, we’re talking $550 million revolving lines, for companies maneuvering the feast or famine cycle.
What sets them apart? They get it. They understand that your slow season doesn’t mean you’re a risky bet; it means you need strategic breathing room before the rush hits.
Their asset based lending approach includes seasonal adjustments customized to your actual business rhythm, not some cookie cutter formula. You’ll find fewer covenants and more flexibility than traditional banks offer.
For apparel brands needing serious capital to scale operations during peak demand, White Oak doesn’t just fund your growth, they anticipate it.
The Cost Of Capital vs. The Cost Of Stockouts
The real trap isn’t choosing between spending money or losing money—it’s that both paths drain your bank account, just in different directions.
You’re caught between two brutal options:
- Stockouts cost you 20% of annual revenue during peak seasons like Black Friday
- Excess inventory locks up 25% of your working capital, crippling growth investments
- Demand forecast errors force you to choose between overstock losses or missed sales
- Just In Time inventory minimizes holding costs but risks catastrophic stockouts if predictions miss
PO funding resolves this standoff. Instead of gambling with your cash reserves, you fund production precisely when demand signals peak.
You’re not choosing between capital costs anymore—you’re strategically implementing it. That’s the innovation separating market movers from trend chasers in 2026. Effective revenue cycle management enhances your ability to align financing with operational needs.
How To Prepare Your Brand For A PO Funding Application
Before you hit “submit” regarding that PO funding application, you’ve got two critical things to nail down: your sales history‘s got to prove you can actually move inventory, and your manufacturing partners need to show they won’t ghost you mid-production.
Lenders aren’t interested in your best-case scenario—they’re checking whether you’ve consistently fulfilled orders and whether your suppliers have the track record to back up their promises. Get these two components locked in tight, and you’re basically telling the funding company, “We’ve done this before, and we’ll do it again.”
Establishing a liquidityThe ease with which assets can be converted into cash. baseline before applying helps demonstrate your ability to maintain cash flowThe net amount of cash moving in and out of a business. stability during seasonal fluctuations.
Validating Your Sales History
Your sales history is essentially your brand’s résumé, and PO lenders scrutinize it like a hiring manager looking for red flags. They’re not just checking if you’ve made sales—they’re validating that you can actually deliver.
Here’s what lenders want to see:
- Minimum 6 months of documented sales with the same products you’re ordering now
- At least 1 year of supplier relationships showing you’ve traversed the supply chain successfully
- Consistent, punctually customer payments that prove your buyers actually pay their invoices
- Track records on previous orders demonstrating you’ve solved supply chain hiccups before
Lenders focus on your customers’ payment history more than your own credit score.
If your buyers pay reliably, you’re golden. Pull together 12 months of bank statements and P&L documents—this proof alters you from risky to bankable.
Vetting Your Manufacturing Partners
Manufacturing partners can make or break your funding application, and honestly, they can shape or break your entire brand. PO lenders want proof that your manufacturer’s legit, reliable, and actually capable of providing.
Start by checking their years in business and verifying certifications like ISO or OEKO-TEX. Request samples from at least three partners, then test them for quality, durability, and workmanship.
Review their audit reports and confirm fair labor practices. Don’t skip the vetting checklist, document everything carefully. Request detailed quotes, timelines, and MOQ clarifications.
Sign NDAs to protect your designs. When you demonstrate you’ve vetted your partners thoroughly, funders see reduced risk, which means better terms and speedy approvals. Your manufacturer’s credibility directly impacts your funding velocity.
The Future Of Seasonal Finance In 2026 And Beyond
As the seasonal finance realm transforms, you’re witnessing a fundamental shift in how growing brands like yours can access capital when one needs this most. The scenery’s reshaping rapidly, and honestly, it’s working in your favor.
Here’s what’s changing:
- Revenue-based financingFinancing where investors receive a percentage of future gro scales with your actual sales, not your credit score
- Digital lines of credit integrate with your accounting software for real-time flexibility
- AI-powered forecasting predicts seasonal trends before they arrive
- Embedded lending options eliminate the loan-application gauntlet entirely
You’re no longer stuck waiting for traditional banks to understand your January slump or February surge. Modern funders understand.
They’re building tools that match your rhythm, not fight it. Your next growth phase doesn’t require choosing between trends and cash anymore. These innovations help brands optimize cash flowThe net amount of cash moving in and out of a business. during fluctuating business periods through flexible funding solutions.
Frequently Asked Questions
Can I Use PO Funding to Pay off Existing Supplier Debt or Past-Due Invoices?
No—PO funding isn’t designed for past-due invoices. You’ll fund new production orders rather than. For existing debt, you’re better positioned using invoice factoringSelling accounts receivable (invoices) to a third party at a or traditional working capital lines to resolve those obligations initially.
What Happens to My PO Funding if a Production Batch Arrives Defective or Late?
Your funder halts payment release until you resolve defects through quality inspections or renegotiate delivery terms. You’re liable for repayment from customer invoices regardless—defects shift losses toward your brand, not the lender.
Do PO Lenders Require Personal Guarantees or Do They Only Assess Business Creditworthiness?
You won’t need personal guarantees with top PO lenders. They’re evaluating your business’s purchase order quality, supplier reliability, and profit margins—not your personal assets. Your order finances the deal, not your balance sheetA financial statement summarizing a company's assets, liabil.
Can Seasonal Businesses Access PO Funding Year-Round or Only During Peak Production Periods?
You’ll access PO funding year-round whenever you’ve got qualified purchase orders, not just during peak seasons. Lenders evaluate your buyer’s creditworthiness, enabling continuous financing regardless from your business’s seasonal calendar.
How Quickly Can I Secure Additional Funding if My Viral Product Exceeds Initial Projections?
You’ll secure additional funding within 72 hours by submitting updated PO documentation to your lender. They’ll verify increased orders and distribute capital instantly, letting you scale production without waiting for traditional approval cycles.
Gerry's commitment to helping businesses thrive is evident in his track record of providing tailored financial guidance. He understands the unique challenges that companies face and is dedicated to finding innovative solutions to support their growth.
When he's not working with clients or exploring the dynamic world of business financing, Gerry enjoys staying updated with industry trends and sharing his insights through informative articles. His passion for empowering businesses with financial knowledge is a driving force behind his work.
Connect with Gerry Stewart to tap into a wealth of financial expertise and unlock opportunities for your business's success.
