Purchase Order Process
We work directly with well-established food brokers, whose business it is to arrange the purchase and sale of certain food products in our focused areas. The brokers have long-term relationships with large buyers that are regularly in the market for these food products. These buyers tend to be food distributers or retailers, such as restaurant chains, wholesale distributors, supermarkets, and convenience stores. The sellers are food producers or processors of food products, such as, hamburgers, meatballs, chicken breasts, pork products, frozen fish, and such. In a typical transaction, the broker, responding to the buyer's needs, negotiate with the sellers for the product wanted as well as the necessary arrangements to get the product shipped to the buyer. The buyer then agrees to the price negotiated by the broker (price includes broker commission, transportation fees, taxes, duties, lender fees. etc.). A Purchase Order is generated and issued to the broker from the buyer/buying company. The broker provides us with all of the details of the transaction. We analyze the terms and underwrite the potential risk. When the deal meets our parameters we agree to fund the transaction until the buyer pays the balance (terms are 21 days max). The broker then arranges the transportation and prepares all the required documentation. Container is delivered to buyer and the invoice is paid within 21 days. We are repaid and we collect the usage fee for facilitating the purchase. What makes WF Lending successful is a handful of important differences. We have cultivated a network of well-established food brokers that depend on trusted, reliable funding source for their business transactions. Our capital size makes us a reliable funding source to our partners and gives us the breadth to see enough transactions to constantly put our money to work. We are positioned to analyze and underwrite quickly our funding decisions. Responsiveness is very important in this business. We quickly evaluate the transaction and then diligently mitigate our investment risk. We offer discretion since our brokers have developed proprietary and confidential relationships to do their business, and they know we treat those relationships in a confidential manner.
Please feel free to contact us to find out more about the Purchase Order Process.
