Company: KZN Safety Solutions*
Owners: David and Sarah*
Industry: Specialised Personal Protective Equipment (PPE) Supply
Challenge: Fulfilling a game-changing purchase order that was five times larger than their usual business.
Solution: Purchase Order (PO) Funding
The Background
For three years, David and Sarah Miller had steadily grown their business, KZN Safety Solutions, from their small warehouse in Pinetown. They had built a solid reputation for supplying high-quality, specialised PPE to construction and engineering firms across KwaZulu-Natal. While their business was profitable, growth was limited by their cash flow. They could only take on orders they could fund from their own working capital, which meant turning down larger opportunities.
“We knew we had a great product and a strong client base,” explains David. “But we were stuck in a cycle. To get bigger clients, you need to be able to handle bigger orders. But to fund bigger orders, you need the cash from bigger clients. It felt like a classic catch-22.”
The Opportunity of a Lifetime
In early 2024, the breakthrough they had been working towards arrived. A major national construction company, impressed by their quality and service on smaller jobs, issued them a purchase order for R1.2 million to supply a full range of specialised safety gear for a new infrastructure project.
It was a transformative opportunity, but it came with a huge challenge. Their overseas supplier required a 75% upfront payment to begin production – a total of R900,000.
“Our hearts both soared and sank at the same time,” says Sarah. “This was the deal that could put us on the map. But there was simply no way we could come up with R900,000 in cash. Our bank told us a business loan would take at least six to eight weeks to approve, with no guarantee of success. We had to deliver the first batch of equipment in 45 days. We were on the verge of having to turn down the biggest opportunity our company had ever received.”
The Solution: Fast and Strategic PO Funding
Refusing to let the opportunity die, David researched alternative business finance and discovered Purchase Order Funding. After submitting an online enquiry, they were contacted within hours.
The process was refreshingly straightforward:
- Verification: They provided the signed purchase order from the construction company and the official quote from their supplier.
- Due Diligence: The finance company quickly verified the legitimacy of the purchase order with the construction company and confirmed the supplier’s details.
- Funding: Within three days of the initial application, the finance company paid the R900,000 deposit directly to their overseas supplier.
This single action set the entire project in motion. The supplier began production immediately, the goods were manufactured and shipped on time, and KZN Safety Solutions was able to deliver the order to their new client well within the deadline.
The Numbers: How Funding Grew the Bottom Line
This is where the power of PO Funding becomes clear.
- Purchase Order Value: R1,200,000
- Total Cost of Goods (from supplier): R900,000
- Gross Profit on the Deal: R300,000
- Cost of PO Funding (including all fees): R95,000
- Final Net Profit for KZN Safety Solutions: R205,000
Without PO Funding, their profit from this deal would have been zero, because they would have been forced to turn it down. By using this specialised funding, they were able to realise a net profit of over R200,000 on a single transaction.
The Result: A Business Transformed
“That one deal changed everything,” says David. “The profit we made gave us a massive cash flow boost, allowing us to build up our own stock levels. But more importantly, successfully delivering on that large contract cemented our reputation. The national company has since placed two more large orders with us.”
KZN Safety Solutions is now able to bid on larger tenders with confidence, knowing that they have a funding partner who can help them deliver. They have since hired two new staff members and are looking at expanding their warehouse space.
This case study is a powerful example of how Purchase Order Funding isn’t just a loan; it’s a strategic tool that enables small businesses to break through their glass ceiling, take on bigger projects, and achieve exponential growth.
*Names have been changed for privacy.
