Target can pay up to 120 days after the invoice date, and the order has to be made and shipped first. One Target order, from purchase order to production to payment.
Last edited 5 min read
120 days from the invoice date is as long as Target can take to pay a vendor, by its own annual report, and there is no invoice until the order has been made and shipped.1 To fund a Target purchase order, most brands use purchase order financing to pay the supplier before production and invoice factoring to carry the wait until Target pays.
This post walks one Target order from purchase order to production to Target's payment, with Target's published terms and its own early-pay program along the way. We sell two of the options, so check our work. It is not legal or financial advice.
What are Target's payment terms for vendors?
Target's annual report describes banks that act as its paying agents to certain vendors, and puts its payment date at "up to 120 days from the invoice date."1 Your own terms are in your vendor agreement and in Partners Online, Target's vendor portal.
Read that number from the invoice date, not the purchase order. Before the invoice there is sourcing, a production run and freight to Target's distribution centers, and deductions for shortages or late delivery can come off the payment when it arrives.
How does a Target order go from purchase order to payment?
In five stages, and you pay for the first three before Target pays for any of them.
Take a $100,000 Target order that costs $60,000 to make. Here it is on your own cash, and funded.
| Question | On your own cash |  PO financing + factoring |
|---|---|---|
| The order arrives | You find $60,000Deposits for the run, packaging and freight | Spring pays your supplierAgainst the signed order |
| Production | Your cash is tied upFor the weeks of the run | Your cash stays freeFor payroll and the next order |
| Ship and invoice | Target's terms startFrom the invoice date | The invoice is advancedFactoring tops up the funding |
| Waiting for Target | Up to 120 days1On Target's published terms | Spring waitsNot you |
| Target pays | Into your bankLess any deductions | Into an account Spring holds for youThe funding and fee are settled; the rest is released to you |
- The order arrives. Spring can read it straight from your retailer portal or EDI.
- The supplier is paid. Purchase order financing pays most of the $60,000 directly to the co-packer and packaging supplier. Production starts that week.
- You ship and invoice. The goods go to Target's distribution centers and you invoice Target for $100,000.
- The invoice is advanced. Invoice factoring tops up the funding against the invoice, so you have working cash while Target's terms run.
- Target pays. Target pays the invoice into the account named in the Notice of Assignment. The funding is settled out of that payment, and the rest goes to you.
Doesn't Target's own early-pay program cover this?
Only the wait, and only after the invoice. Target's banks let a vendor, at its own choice, take early payment of Target's obligation at a discount; Target still pays the bank on the original date.1 That can shorten a long wait, but an invoice exists only once the goods have shipped, so it does nothing for the $60,000 it costs to make them.
How much does it cost to fund a Target order?
Spring's price is 12% to 36% a year, charged only on the days the money is out. On $60,000 out for 90 days, that is about $1,775 at 12% and about $5,326 at 36%. Longer terms cost more days, which is why the date Target pays matters as much as the rate.
What should you know before using Spring for a Target order?
That Target will know. Spring needs a Notice of Assignment for purchase order financing and invoice factoring: a letter asking Target's accounts payable team to pay your invoices to an account Spring holds for you. Your first funding waits until Target acknowledges it, which usually takes days and occasionally a couple of weeks. Here is what a NOA actually does. One brand's version of this story is Alleyoop's launch in more than 600 Target stores.
When is something else the better choice?
- Production is not the problem. If you can make the order and only the wait hurts, Target's early-pay program may be enough on its own.
- You will use the money all year. A bank or an asset-based line is usually cheaper for steady need.
- There is no order yet. Bridge Funding needs no order and no Notice of Assignment.
Frequently asked questions
How do I fund a Target purchase order?
Most brands use two products. Purchase order financing pays your co-packer and suppliers against the signed Target order, so production can start. Invoice factoring then advances the invoice once the goods ship, so you are not waiting out Target's terms. Target's payment settles both. Spring offers both.
What are Target's payment terms for vendors?
Target's annual report for fiscal 2025 puts its payment date at up to 120 days from the invoice date for vendors paid through its banks. Your own terms are in your vendor agreement and in Partners Online, and deductions for shortages or late delivery can come off the payment.
How do I get from a Target purchase order to production to Target paying?
Purchase order financing pays your supplier against the order, so production starts. When the goods ship you invoice Target, and invoice factoring advances against the invoice. Target then pays the invoice into the account named in the Notice of Assignment, which settles the funding, and the rest is released to you.
Can I factor invoices to both Target and Walmart?
Yes. Both are the kind of customer a factor wants, and with Spring each retailer pays on its own account number, so the two never mix. Walmart's published terms are shorter: how to fund a Walmart purchase order.
Does Target's early-pay program pay for production?
No. It lets a vendor take early payment of an invoice at a discount, so it starts after the goods have shipped. The cost of making the order has to be funded some other way, usually with purchase order financing.
Will Target know I am using a funder?
Yes, with Spring and with most factors. A Notice of Assignment asks Target's accounts payable team to pay your invoices to an account the funder holds for you. Retailers process these routinely. What a NOA is and what it does.
How long does it take to get funded for a Target order?
With Spring, days once the order and Target are verified and Target has acknowledged the Notice of Assignment, which usually takes days and occasionally a couple of weeks.
If you have a Target order to fill, get started or talk to the team.
1 Target Corporation, Form 10-K for the fiscal year ended January 31, 2026, Note 14, "Supplier Finance Programs", read October 2026.
