Another possible source of purchase order financing is existing investors. For example, I am a major investor in (and a board observer of) a young startup that

Another possible source of purchase order financing is existing investors. For example, I am a major investor in (and a board observer of) a young startup that is just ramping up production. I've indicated to them that, should the need arise, I would be willing to provide some financing to help bridge a gap in their cash flow. Obviously, I would have to be very careful not to massively concentrate my financial risks (or to throw good money after bad, if a loan is needed because the company is struggling). However, no bank is going to know them as well as I do, and, if it really is just a cash flow issue, then I am highly incentivized help them out. Any interest I would collect on such a loan would pale in comparison to the increase in the valuation of my stake in the company.