Hypothetical example: purchase order document checklist with cancellation fields, $90,000 order
| Field | What to record | Hypothetical entry |
|---|---|---|
| Order value | Total on the signed PO | $90,000 |
| Cancellation right | Who may cancel, until when | Customer, free until 10 days before ship date |
| Deposit received | Amount and percentage | $18,000 (20% of $90,000) |
| Deposit after window | Refundable or kept | Kept by seller |
| Committed supplier costs | Cannot be returned | $31,500 |
| Custom packaging | Cannot be reused | $4,200 |
| Total committed costs | $31,500 + $4,200 | $35,700 |
| Exposure if cancelled after window | $35,700 minus $18,000 deposit | $17,700 |
| Customer proof | Attach to file | Signed PO, email approval, prior order history |
All figures are hypothetical. Fill the same fields from your own purchase order, and note any term you cannot confirm in writing.
What cancellation rights does the purchase order give the customer?
Read the order for the exact conditions under which the customer can cancel, because the funder will read the same words and weigh how firm the commitment really is.
Look for who may cancel, the deadline, whether notice must be in writing and whether the customer can cancel for any reason or only for cause such as late delivery. In the example, the customer may cancel at no cost until 10 days before the ship date, and after that point the order stands.
Write that sentence in your own file, in plain words, next to the order value. A funder who finds a cancellation clause on page three of the PO that you never mentioned is less likely to trust the rest of the file.
How do deposits and penalties change the picture?
A deposit the customer forfeits on cancellation, or a stated cancellation fee, is the strongest evidence that the order is real, because the customer has money at risk too.
In the example, the customer paid $18,000, which is 20% of the $90,000 order. After the cancellation window it stays with the seller. That reduces your exposure and shows commitment.
Record whether the deposit is refundable, partly refundable or kept, and attach the payment record. If there is a cancellation fee instead of a deposit, give the amount and the date it applies from. If neither exists, say so, and expect the funder to ask more about the customer.
What evidence shows the customer is committed?
Show the signed order, the customer's approval, the customer's history with you and any costs you already committed because of the order.
- The signed purchase order or contract, with the cancellation terms visible.
- Email approval from a named buyer at the customer.
- Past orders from the same customer and how they paid.
- Proof of the deposit in a business bank statement.
- Supplier receipts showing which costs cannot be returned.
Committed costs matter in both directions. They show you have acted on the order, and they define your risk if the customer cancels. The example lists $31,500 of supplier costs plus $4,200 of custom packaging, for $35,700. Our guide on presenting a deal to a funder shows how to organize this evidence.
A customer that is a long-standing account is easier to document than a new one. If the customer is new, add what you know about their business and how they were vetted.
How do you present the uncertainty honestly?
State your worst case in dollars, then show how you would handle it, instead of leaving the funder to guess.
In the example, if the customer cancels after the window, committed costs of $35,700 less the $18,000 deposit leave $17,700 of exposure. Say that number, and say what you could do with the goods: resell them, return part of them or hold them for the next order.
Then match the request to the firmness of the order. If the order is highly cancelable and the deposit is small, a smaller request or a staged purchase may be a better plan. The documents funders ask for are the same whether the order is firm or not, but the explanation around them matters more here.
A decision typically comes within 24 hours of a complete application. The funder that makes an offer reviews the file and sets terms, and rate, term and payment schedule vary by product and by the strength of the business. When your checklist is filled in, describe the purchase and deadline in the one online application. The funding to fulfill a purchase order page explains how a single order is reviewed.
Frequently asked questions
Can a cancelable purchase order be funded?
It can be submitted, and the funder reviews the full file and decides. Cancelable orders are a softer commitment, so clear terms, a deposit and proof of the customer's history help. Nothing about the outcome is promised in advance.
Does a deposit make the order stronger?
Generally yes, because the customer has money at risk. Show the amount, the payment record and what happens to it on cancellation. A refundable deposit counts for less than one the customer forfeits.
What if I cannot get the cancellation terms in writing?
Ask the customer to confirm them by email. If they will not, note the uncertainty plainly in your application. A funder prefers a known risk to a discovered one.
Should I fund the whole order or part of it?
Match the request to your exposure and the firmness of the order. A smaller request that covers committed costs may fit a cancelable order better than the full value. Compare options before you accept.
Do I have to accept an offer?
No. There is no obligation, and checking options does not affect your personal credit score. Review the written terms, compare them with your checklist and decide.
Describe your purchase and deadline
Share the order, its cancellation terms and your timeline in one application.
Updated October 17, 2026 · Prime Funding Now Funding Team