PO Financing for New Walmart Suppliers | No AR History
How New Walmart Suppliers Get Purchase Order Financing With No AR History
A confirmed Walmart purchase order is one of the strongest signals a CPG brand can send to a lender. It means a creditworthy retailer has committed to buying your product. But for first-time suppliers, that PO creates an immediate problem: you need cash to produce and deliver goods before Walmart pays you, and you likely don't have accounts receivable history for a lender to evaluate.
Purchase order financing solves this specific gap. PO lenders underwrite the transaction, not your credit profile, which makes this one of the few financing structures available to new suppliers with no AR track record. Here is how the process works, what lenders look for, and how to get your first Walmart order funded through Bridge.
Why New Walmart Suppliers Face a Funding Gap
Getting accepted as a Walmart vendor is the hard part. Then the cash timing problem starts.
Walmart's payment terms typically run 30 to 90 days after delivery. Your co-packer or manufacturer needs payment before production begins, often requiring 30–50% upfront as a deposit. The gap between when you pay your supplier and when Walmart pays you can stretch to 60–120 days, depending on production timelines and retailer payment cycles.
For established suppliers with existing credit lines or AR history, that gap is manageable. For a first-time Walmart supplier, it is not. You don't have a factoring line because you don't have invoices yet. You probably don't have an asset-based lending facility because you lack the collateral history. And using equity cash or personal savings to fund production means every dollar tied up in fulfillment is a dollar not available for marketing, hiring, or the next order.
This is the exact scenario purchase order financing was built for.
How PO Lenders Evaluate New Suppliers (Without AR History)
Traditional lenders evaluate your business: credit score, revenue history, financial statements, time in business. PO lenders flip that model. They evaluate the transaction.
According to Avi Levine of Star Funding, a PO financing specialist with 25 years of experience and a lender on the Bridge platform: "We look at that specific transaction and say, 'Great, we are going to help finance the production of these goods to get them delivered to your customer.'"
Here is what PO lenders actually evaluate when you have no AR history:
Buyer creditworthiness
Walmart's credit profile is the primary collateral. Because Walmart reliably pays its invoices, PO lenders treat a confirmed Walmart order as strong security. This is why Walmart POs are among the most attractive collateral in PO lending, according to Bridge.
Gross margin on the order
PO lenders need to confirm the transaction generates enough profit to cover financing costs and leave you with a viable return. The industry standard minimum is 20–30% gross margins, according to Bridge's PO financing guide. If your margins are below 20%, the math often doesn't work because financing fees (typically 1.5–3% per 30-day period) eat into thin margins too aggressively.
Supplier reliability
Your manufacturer or co-packer matters. Lenders want to see that your supplier has a track record of producing goods on time and at the quoted cost. Star Funding, for example, has team members with backgrounds in production, manufacturing, and logistics who evaluate whether goods can be produced and delivered on schedule, according to Levine's interview on the Bridge blog.
Fulfillment plan
Can you actually deliver? Lenders review your delivery timeline, shipping logistics, and whether the production schedule aligns with Walmart's required delivery windows. A confirmed PO alone is not enough. The lender needs confidence in the execution plan from order to delivery.
The key takeaway: your personal credit score and business revenue history matter far less than the quality of the order, the strength of the buyer, and your margins.
What "Up to 100% of COGS" Actually Means
You will see PO financing companies advertise coverage of up to 100% of the cost of goods sold. Star Funding and Bridge both offer this on approved transactions. But it is worth understanding what this covers and what it doesn't.
The lender pays your supplier directly. You do not receive cash. The funds go to your manufacturer or co-packer to cover production and acquisition costs for the specific order. This includes raw materials, manufacturing labor, and in some cases, logistics and shipping costs to get goods to Walmart's distribution centers.
What 100% COGS coverage does not include:
- Marketing or sales expenses
- Overhead or payroll unrelated to the order
- Costs for orders with other retailers
This is transaction-level financing. One PO, one funding event. Once you deliver and Walmart pays, the lender deducts fees and remits the remaining balance to you. If you have another order, you repeat the process, and subsequent transactions typically move faster because the lender already knows your business.
Step-by-Step: Getting Funded for Your First Walmart PO
Step 1: Confirm your purchase order is non-cancellable
Before approaching any lender, make sure your Walmart PO is confirmed and non-cancellable. Lenders will not finance tentative or conditional orders. If your buyer is still finalizing quantities, wait until the PO is locked.
Step 2: Gather your documents
New suppliers should prepare the following before contacting a PO lender:
- Confirmed, non-cancellable purchase order from Walmart
- Supplier or co-packer quote showing the cost of goods for the order
- 3–6 months of business bank statements
- Business registration and tax documents (EIN, articles of incorporation)
- A basic fulfillment plan showing production timeline, delivery schedule, and supplier payment terms
Having these ready upfront compresses the onboarding timeline. Incomplete submissions are the most common cause of delays.
Step 3: Submit your request through Bridge
Bridge is a direct lender for Walmart-focused purchase order financing. Share your confirmed PO and supporting documents, and Bridge evaluates the transaction: buyer terms, supplier quotes, margin structure, and fulfillment timeline. Term sheets are typically available within 24 hours for complete submissions.
Bridge also connects Walmart suppliers with vetted PO lending partners like Star Funding, a New York City-based firm that has specialized in purchase order financing and factoring for 25 years.
Step 4: Complete onboarding (7–10 business days)
For new clients, onboarding with a PO lender typically takes 7–10 business days. According to Avi Levine of Star Funding: "The entire process usually takes between 7-10 business days to onboard a new client. Once they are officially a client, we can start financing their orders."
Rushed timelines are possible but require everyone involved to move fast. Levine noted that Star Funding has completed onboarding in as little as two business days when urgency demanded it, but the standard process runs 7–10 days.
During onboarding, the lender:
- Verifies the Walmart PO and buyer credit
- Reviews your supplier's track record and quotes
- Confirms margin structure and repayment path
- Sets up the legal agreements and funding mechanics
Step 5: Supplier gets paid, production starts
On approval, the lender pays your supplier directly, usually via wire transfer or letter of credit. Your co-packer begins production, and you manage fulfillment and delivery to Walmart.
Step 6: Walmart pays, lender is repaid, you receive the balance
When Walmart pays the invoice on its standard terms, the lender deducts financing fees and remits the remaining balance to you. That remaining balance is your profit on the order.
What PO Financing Costs New Suppliers
Transaction fees for purchase order financing typically range from 1.5% to 3% per 30-day period on the funded amount, according to Bridge's PO financing guide. On a $100,000 advance with a 60-day cycle, that translates to roughly $3,000–$6,000 in total fees.
The cost comparison that matters for most new suppliers is not PO financing versus a bank line of credit (which you probably don't have yet). It is PO financing versus the next dollar you would otherwise use to fill the order. For many first-time Walmart vendors, that next dollar is equity cash, personal savings, or operating funds that should be preserved for growth.
Star Funding's rates range from roughly 2–3% per period, with the specific rate depending on order size, buyer credit, and repayment timeline.
Why Early Payment Programs Don't Solve the New Supplier Problem
Walmart offers early payment options that can accelerate cash flow after you deliver goods and submit invoices. These programs are useful once you are an established supplier with invoices in the system. But they do not fund production before shipment.
If you need money to produce the goods, early payment programs cannot help. They apply after delivery, not before. PO financing covers the gap before shipment, which is where new Walmart suppliers get stuck. The two tools can work in sequence: PO financing funds production, and after delivery and invoicing, early payment or accounts receivable financing accelerates the retailer's payment.
How Bridge Helps First-Time Walmart Suppliers Get Funded
Bridge is the direct lender for Walmart-focused purchase order financing, funding up to 100% of COGS on approved transactions. For new suppliers, the process is straightforward:
- Share your confirmed Walmart or Sam's Club purchase order with Bridge.
- Bridge evaluates the transaction: buyer terms, supplier reliability, margin structure, fulfillment timeline.
- On approval, Bridge funds your supplier directly so production can start without depleting operating cash.
- You produce and deliver the order.
- When Walmart pays, Bridge is repaid and the remaining balance goes to you.
Bridge also connects suppliers with specialized PO lending partners like Star Funding when a deal fits better with a lender that has deep expertise in specific transaction types. No upfront fees to request financing and receive loan terms. You only proceed with a deal that makes sense for your margins and timeline.
FAQs
Can I get PO financing as a brand-new Walmart supplier with no sales history?
Yes. PO lenders evaluate the transaction, not your business history. What matters most is the creditworthiness of the buyer (Walmart), your gross margins (typically 20–30% minimum), and your supplier's reliability. Star Funding and Bridge both work with first-time Walmart suppliers on approved transactions.
How long does it take to get funded for my first Walmart PO?
Onboarding a new client typically takes 7–10 business days, according to Star Funding. After onboarding, funding can happen within days for each transaction. Complete document submissions compress the timeline. Bridge provides term sheets typically within 24 hours for complete submissions.
What is the minimum order size for PO financing?
Most PO lenders require minimum order values of $50,000–$100,000, though this varies by lender. The order needs to be large enough for the transaction economics to work after financing fees.
What gross margin do I need to qualify?
The industry standard minimum is 20–30% gross margins. Your margins need to cover financing fees (typically 1.5–3% per 30-day period) and still leave a viable profit. If your margins are below 20%, PO financing may not be the right fit for that specific order.
Does PO financing affect my credit score?
PO financing is asset-based, secured against the purchase order and buyer credit. Most PO lenders do not require traditional credit checks. However, some may perform a soft credit inquiry during onboarding. Ask your lender about their specific process.
Can I use PO financing for Sam's Club orders too?
Yes. Bridge's Walmart-focused PO financing program also supports Sam's Club suppliers. The underwriting process is the same: confirmed PO, adequate margins, reliable supplier.
Conclusion
A Walmart purchase order is worth nothing if you can't fund production. That's the core problem, and PO financing exists to solve it.
New suppliers without AR history, credit lines, or factoring facilities aren't disqualified. The transaction carries the weight: Walmart's creditworthiness, your margins, your supplier's reliability, and a solid fulfillment plan. If those elements check out, the financing follows.
The math is straightforward. Financing fees run 1.5–3% per 30-day period. Your margins need to absorb that cost and still leave a viable profit. If they do, PO financing lets you fulfill the order without draining operating cash or burning equity on inventory execution.
Bridge funds up to 100% of COGS on approved Walmart and Sam's Club transactions. No upfront fees to request financing. Submit your confirmed PO, and Bridge evaluates the deal within 24 hours for complete submissions.