Purchase Order Financing - BDC
PURCHASE ORDER FINANCING
INSTRUCTIONS TO SOLICITORS
• Purchase Order Financing (“POF”) is a new BDC lending initiative directed to Auto Parts Manufacturers in Ontario. This programme provides funds to complete a purchase order(s) (the “Purchase Order”) identified in the Loan Purpose section of the Letter of Offer. Forms specific to this programme are available on the BDC website as :
Purchase Order Financing Assignment and Direction
Purchase Order Financing Priority Agreement
Please follow these instructions even if they conflict with the Service Standards.
• POF is demand financing and repayment is related to the completion and invoicing of the Purchase Order.
• The Security Section of the Letter of Offer calls for:
1. General Security Agreement creating a first security interest in the Purchase Order and a security interest in all present and after acquired personal property subject to any existing prior charges.
Please use BDC’s standard GSA and refer to the Purchase Order in Schedule “A” of the GSA.
The PPSA filing should be for a two year period.
2. Purchase Order Financing Priority Agreement from any prior secured creditors.
This form is to be used to provide a first priority on the Purchase Order. Do not use any other priority letter or agreement. This form has been approved by the major chartered banks. The electronic name of this document for reporting purposes is:
account number_loan multiple_Purchase order priort agrmt_other lender.
3. Purchase Order Financing Assignment and Direction.
This form allows BDC, if it so wishes, to contact the buyer and to request that payment of the Purchase Order be made to BDC. The electronic name for reporting purposes is:
account number_loan multiple_Purchase order asgmt_borrower
4. Insurance Confirmation that BDC has been named as loss payee to the extent of its interest on the personal property of the Borrower.
• You are to provide a Solicitor’s Report and refer to the POF documents under “Other” (documents) in the Report.
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