Setscale

Setscale is a purchase order (PO) financing provider that advances capital against a business's existing customer orders. Rather than lending against a company's balance sheet alone, Setscale pays a client's manufacturers directly — up to 100% of production costs — so the client can produce and deliver goods for open purchase orders it would otherwise lack the working capital to fill.

The company describes its offering as non-dilutive and structured on a transaction-by-transaction basis: there is no monthly interest rate and no monthly payment schedule. Each funded order is opened and settled in full at its own start and close, with repayment triggered when the end-buyer receives the goods, is invoiced by the client, and pays Setscale directly. Setscale states it does not focus on a specific category of goods and evaluates purchase orders of all sizes, from bootstrapped founders bringing a first product to market through small and medium-sized enterprises and larger established businesses.

Business model

Setscale funds individual purchase orders by paying the client's suppliers or manufacturers, then is repaid when the client's end-buyer pays for the delivered goods. Funding is provided under a transactional joint venture agreement and confirmation letter signed after approval, with each transaction assessed and settled separately rather than as an ongoing loan facility.

Compensation is tied to the completion of each funded transaction — Setscale is paid when the client's end-buyer pays — rather than through monthly interest or recurring fees; the company states it charges no monthly interest rate and requires no monthly payments.

Traction

Setscale publishes a client testimonial from SFIJ Industrial, Inc., which states it had completed seven transactions with the company and was preparing an eighth, citing speed and adaptability in filling orders for its largest customer.