Businesses that need capital to move goods through their supply chain often face the same challenge: traditional lenders can be slow, require collateral that growing companies may not have, and often don't understand purchase order financing.
Aurous Financial built its process to fill that gap. This article explains how Aurous evaluates deals, what applicants need to provide, and what businesses can expect from application through funding.
Aurous provides financing for the costs involved in moving finished goods from a manufacturer to an end buyer. Depending on the transaction, Aurous can cover all of these costs or finance only the portion a business needs.
Eligible expenses typically include:
This makes Aurous a potential fit for businesses with confirmed purchase orders but limited working capital to fulfill them.
Aurous follows a structured evaluation process designed to move quickly without skipping the diligence required to understand each transaction. The company aims to fund within 10 days of receiving a complete application, with each stage serving a specific purpose.
The process begins with a 20-minute call. This gives Aurous and the business an opportunity to determine whether the transaction is a good fit before either side invests time in paperwork.
Starting with a short conversation also helps identify potential issues early, saving businesses from completing an application for a transaction that may not qualify.
If there’s a fit, the business completes an application and provides the documents needed for diligence. Most applicants can complete this step in about an hour, although the process can take longer if financial or operational records are not readily available.
Having organized documentation on hand can help keep the process moving.
Aurous' underwriting team reviews the completed application over the next few days. The team evaluates factors such as the strength of the purchase order, the buyer relationship, and the overall risk of the transaction.
The goal is to understand not only whether a purchase order exists, but whether the underlying transaction is structured to support financing.
The business then participates in an operational call with the underwriting team, typically lasting an hour or less. This gives Aurous an opportunity to better understand how the transaction will work operationally.
Following the call, Aurous issues a letter of intent. This indicates that the transaction has cleared the underwriting process and is moving toward final terms.
After the business signs and returns the letter of intent, Aurous completes its final diligence. When necessary, the company also works with the business's existing accounts receivable lender to negotiate an intercreditor agreement.
Aurous has relationships with more than 75 banks, factors, and asset-based lenders. As a result, this coordination can often be completed within hours rather than taking days.
Once the necessary agreements are signed, Aurous deploys funds directly into the business's supply chain and tracks the goods through delivery to the end buyer.
This hands-on approach keeps Aurous involved throughout the transaction rather than simply providing capital and stepping away. That oversight can be especially valuable when businesses manage time-sensitive purchase orders and coordinate multiple parties across the supply chain.
Repayment occurs once the goods are assigned to the business's factor, bank, or asset-based lender. That lender verifies the transaction and releases the first portion of its advance to repay Aurous.
The remaining balance of the advance is then provided directly to the business. This structure allows Aurous to work alongside a company's existing lending relationships rather than requiring the business to replace them.
Understanding a lender's process before applying can save your business valuable time and help you determine whether purchase order financing is the right fit.
Aurous Financial built its evaluation process around speed, transparency, and clear milestones, targeting funding for complete applications within 10 days. If your business has a purchase order and needs capital to fulfill it, our team is ready to walk you through the process.
We'll provide a real quote within 24 hours. Reach out today to start the conversation and find out whether Aurous is the right fit for your next transaction.
