Purchase Order Funding in South Africa
100% PO Finance From R250,000
Landed a large order but don’t have the cash to pay your suppliers? New Heights Finance connects South African businesses with purchase order funding from R250,000 to R5 million — with no collateral required, no balance sheet needed, and no previous trading history. Term sheets within 48 hours. Paid out within 7 days.
PO Funding at a Glance
No collateral required
No trading history needed
Term sheet within 48 hours
Government&private orders
Open to all businesses
Purchase order funding (also called PO funding or purchase order finance) is a short-term financing solution that advances the capital needed to pay your suppliers so you can fulfil a confirmed customer order — before the customer pays you. The purchase order itself acts as the security. No collateral, no balance sheet, and no trading history are required. In South Africa, PO funding typically covers orders from R250,000 to R5 million, with term sheets issued within 48 hours and funds paid within 7 days.
What is a Purchase Order Funding?
Purchase order funding — also referred to as PO funding or purchase order finance — is a financing solution for businesses that have secured a confirmed, binding order from a creditworthy buyer but lack the working capital to pay their suppliers upfront.
Unlike a traditional business loan, PO funding is not based on your credit history, your balance sheet, or your trading track record. Approval is based on two things: the validity of the purchase order and the creditworthiness of the end customer placing the order. This makes it one of the most accessible forms of business funding available to South African SMEs, startups, and growing businesses.
New Heights Finance is a registered finance broker. We do not provide PO funding directly — we connect you with specialist private lenders, assess the transaction on your behalf, and guide you through the process from application to payout.
Is Purchase Order Funding Right For Your Business?
You've landed a large order but don't have the cash to pay your supplier upfront
Your cash flow is tied up and you can't take on new orders without it
Traditional bank loans are too slow, require too much collateral, or are out of reach
You need to bridge the gap between receiving an order and collecting customer payment
You're a startup or SME with a confirmed order but no financial track record
You want funding that scales with your orders — not a fixed debt facility
If any of these describe your situation, purchase order funding could be the solution your business needs.
How Does Purchase Order Funding Work?
We handle the heavy lifting. You submit one application — we approach multiple lenders, compare offers, and present you with the best available terms. No multiple credit checks, no lender shopping on your own.
You receive a confirmed purchase order
Your business receives a legally binding purchase order from a creditworthy buyer — a government department, municipality, or established private company. The PO details the goods, quantities, and agreed payment terms (30–90 days).
Submit your deal details
You submit the purchase order and deal details to us online. We assess the creditworthiness of your end customer and the viability of the transaction — not your credit score or balance sheet.
Term sheet issued
Once assessed, a term sheet outlining the funding amount, profit share, and conditions is presented to you. Most clients receive a term sheet within 48 hours of submission.
Agreement signed & supplier paid
You accept the proposal and sign the funding agreement. The lender pays your supplier directly for the goods needed to fulfil the order — ensuring rapid release of stock.
Goods delivered, customer invoiced
Your supplier dispatches the goods to your customer. You invoice the end customer for the full agreed amount. The invoice is managed as part of the PO funding arrangement.
Customer pays — you receive your profit
Your customer pays the invoice directly to the lender. The lender deducts the pre-agreed profit share fee and remits the remainder — your profit margin — directly to your business account.
Who Qualifies For Funding for Purchase Orders?
To be considered for purchase order funding in South Africa, your transaction needs to meet the following criteria. These are assessed by the lender — not by New Heights Finance directly.
- Wholesalers and distributors buying finished goods for resale
- Importers and exporters facing upfront supplier payment demands
- Government contractors with confirmed municipal or state orders
- Startups and SMEs with a valid PO but no financial track record
- Businesses with seasonal demand needing to stock up quickly
- Any business with a minimum 30% profit margin on the order
- Service-based businesses (no physical goods involved)
- Businesses manufacturing goods entirely from scratch (no pre-purchased components)
- Orders with payment terms exceeding 90 days
- Orders with a profit margin below 30%
- Orders from third-party agents (must be direct from the original client)
| Requirement | Detail |
|---|---|
| Valid purchase order | A genuine, legally binding PO from a creditworthy government, municipality, or established private company |
| Direct client contract | The order must come directly from the end customer — not from a third-party agent or intermediary |
| Minimum profit margin | At least 30% margin on the order to be considered viable by lenders |
| Payment terms | Customer payment terms of 30 to 90 days from invoice date |
| Creditworthy buyer | The lender assesses the buyer's ability to pay — not the seller's credit history |
| Goods-based transaction | PO funding applies to the purchase and resale of physical goods — not services |
| Funding amount | Minimum R250,000 · Maximum R5,000,000 per order |
What Are The Benefits Of Purchase Order Funding?
Seize growth opportunities
Accept larger contracts and expand your customer base without upfront cash limitations. Never turn down a viable order because of a working capital gap.
No collateral required
The purchase order and the creditworthiness of your buyer are the security. Your fixed assets, property, or personal guarantees are not required.
Open to startups and new businesses
Banks avoid lending to new businesses. Purchase order funding is accessible from your very first confirmed order — no trading history or financial statements needed.
Profit share — not interest
There is no interest charged on PO funding. The lender takes the financial risk and shares in the profit of the specific transaction. Costs are directly linked to order value.
Faster than traditional loans
Term sheets within 48 hours and payouts within 7 days. Conventional bank business loans can take weeks or months — too slow for time-sensitive orders.
Scales with your business
As you secure more stable purchase orders, your funding facility can grow with you. PO funding is flexible and reusable — not a one-off fixed facility.
Government orders accepted
We can fund orders from state departments, municipalities, and regional government entities — as well as private company orders and international orders where overseas suppliers are involved.
Stronger supplier relationships
Paying your suppliers on time — or early — builds trust, can unlock better pricing, and ensures priority fulfilment when stock is tight.
What Does Purchase Order Funding Cost?
Purchase order funding does not charge interest in the traditional sense. Instead, lenders charge a fixed fee for every 30-day period the funding is outstanding — calculated as a percentage of the funded amount. This means your cost is directly tied to how quickly your customer pays, and you know your maximum exposure upfront.
Some lenders use a tiered fee structure where the rate reduces after the first 30 days, rewarding faster customer payment.
Example A — Flat fee structure (5% per 30 days)
| Funded amount | Customer pays in 30 days | Customer pays in 60 days | Customer pays in 90 days |
|---|---|---|---|
| R100,000 | R5,000 fee Total repay: R105,000 |
R10,000 fee Total repay: R110,000 |
R15,000 fee Total repay: R115,000 |
| R500,000 | R25,000 fee Total repay: R525,000 |
R50,000 fee Total repay: R550,000 |
R75,000 fee Total repay: R575,000 |
| R1,000,000 | R50,000 fee Total repay: R1,050,000 |
R100,000 fee Total repay: R1,100,000 |
R150,000 fee Total repay: R1,150,000 |
Example B — Tiered fee structure (5% first 30 days, then 2% per 15 days)
| Funded amount | Paid at day 30 | Paid at day 37 | Paid at day 45 | Paid at day 60 |
|---|---|---|---|---|
| R100,000 | R5,000 | R7,000 vs R10,000 flat |
R7,000 | R9,000 vs R10,000 flat |
| R500,000 | R25,000 | R35,000 vs R50,000 flat |
R35,000 | R45,000 vs R50,000 flat |
Apply for PO Funding
Submit your deal details online. Term sheet within 48 hours.
- No collateral required
- No trading history needed
- Government & private orders
- Term sheet within 48 hours
- Paid out within 7 days
Document Checklist
Minimal docs needed — tick off as you go.
Frequently Asked Questions
What is purchase order funding?
Who qualifies for purchase order funding?
How quickly can purchase order funding be approved?
Can small businesses apply for purchase order funding?
What documents are needed for purchase order funding?
What profit margin must my order have?
How does purchase order funding work in South Africa?
What are the requirements for purchase order funding?
How much of the purchase order value can be funded?
What is the difference between purchase order funding and invoice discounting?
Purchase order funding advances capital before goods are delivered — to pay your supplier so you can fulfil the order. Invoice discounting advances capital after goods are delivered — releasing cash against the value of an unpaid invoice owed by your customer. PO funding addresses the gap between receiving an order and paying your supplier; invoice discounting addresses the gap between delivering goods and collecting payment. The two products can be used together or independently, depending on where your cash flow constraint sits.
Do you need collateral for purchase order funding?
How are tender deals assessed?
Important disclosure: New Heights Finance is a registered finance broker and does not directly provide loans. We earn a commission from lenders, typically a fixed percentage of the loan amount. Loan approval is subject to each lender’s terms and conditions at the time of application. Cost figures shown are indicative only. Please assess your ability to service any loan before applying.
Don’t turn down a good order.
We’ll fund it. Apply Now!
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