Channel finance is a types of business loan. It provides funding to facilitate the smooth working of the supply chain. Channel finance is a feasible option as it helps the supplier avail working capital and also provides cost optimization benefit for the buyer. Benefits of a channel finance Purchase order finance, also known as 'PO Finance', provides funding for businesses with purchase orders to pay their suppliers and smooth out cash flow. Purchase order financing is, therefore, an effective and popular option for those businesses which need a quick and effective way to finance their purchase orders.