PURCHASE ORDER FUNDING
Pay suppliers upfront to fulfill orders before receiving payment from customers
Get a purchase order loan now! Faster and easier than a traditional bank loan.
100% FUNDING ON YOUR PURCHASE ORDERS
Received a large order from a customer but not sure you have the funds to actually fulfill the order? This is a common problem for South African businesses.
Whether you don’t have the materials in stock or the cash available to buy materials, you risk losing your customer and the order. That’s where purchase order funding can help you bridge the gap!
Purchase order finance South Africa
If you have a legally binding contract in place with a buyer, the lender will supply an advance to you to ensure your business has the raw materials to fulfill the order. The creditworthiness of the buyer will also be assessed to ensure they won’t default on payment.
The purchase order is used as the guarantee to get purchase order finance. It’s useful for start-up businesses, sole proprieters and small businesses who receive huge orders that can assist them in growing their business.
PURCHASE ORDER FINANCE AMOUNT
Get finance of R250 000 to R5 million per transaction
Get feedback on your application within 24 – 48 hours. No more waiting weeks on end for an answer.
Application approved? Receive payment within days.
STEP 1: A VALID PO
All you need, is a genuine binding contract from either government, municipalities or a private companies.
STEP 2: SUBMIT DETAILS
You submit the deal details online, an assessment is undertaken and a proposal submitted to you.
STEP 3: DEAL PROCEEDS
If the proposal is acceptable then an agreement is signed and the transaction takes place.
SMME Finance Solutions in South Africa
So many businesses miss out on orders that will change their businesses because they do not have the funds available to fulfill the order. We assist SMME’s with accessing funds needed to pay suppliers in order to fulfil orders by advancing the value of the PO before the customer pays the invoice.
Most of our clients receive a term sheet within 48 hours and are paid out within 7 days. Existing clients get paid out sooner. You can make use of purchase order finance more than once.
- No risk to you.
- No balance sheet required
- No previous trading history
- No Annual Financial Statements needed
- Any credit score
- First deals welcome
AVAILABLE TO NEW BUSINESSES
Banks tend to avoid granting loans to new businesses, whereas purchase order funding is much faster and easier to obtain.
Your purchase order funding facility can grow as your business grows. The more stable your puschase orders are, the bigger your line of credit can be.
Apply for tender funding in South Africa
Equity funding to finance business transactions for businesses that cannot access money from traditional channels. The equity partner pays the supplier of the goods and once the purchaser has paid, the funder shares in the profit of the deal.
The equity partner takes a risk by providing the tender finance upfront and then shares in the profits of the deal.
Tender financing in South Africa has been set up to assist new entrepreneurs. Tenderpreneur’s are often able to access state and other tenders but sometimes have difficulty in securing tender finance. Our tender financing lenders have the solution to assist in growing the South African tender businesses.
For Supply Chain Finance, Trade Funds, Import Finance, Invoice Discounting and Inventory Finance
THE BELOW FORM ONLY APPLIES TO PURCHASE ORDER FUNDING. PLEASE ONLY SUBMIT THE FORM ONCE AND CHECK YOUR INBOX FOR A CONFIRMATION EMAIL.
FREQUENTLY ASKED QUESTIONS
How long does it take to get approval?
Responses within 2 working days and 7 working days to facilitate the deal.
Smallest deal size?
R 250 000 is the smallest amount that can be funded.
Largest deal size?
Submit your enquiry and if we cannot assist, we will find someone that can.
How are tender deals assessed?
The ‘strength’ of the confirmed order is the main criteria. In other words, who has placed the order and is it a valid order from an accredited vendor, that is able to pay for the goods ordered.
Do I need security/collateral?
No security is needed to access purchase order funding – your PO acts as the security.
Do I need a financial track record?
No, we can assist even if this is your first deal.
Can the order be from a 3rd party?
No, the contract to supply has to be from the original client.
Can you assist with government PO finance?
Yes, it is possible to finance state, municipality and regional government orders and private company orders too.
How long must the PO payment terms be?
From 30 days to max 90 days.
No interest is charged, there is a profit share. The lender takes the financial risk and will share in the profits with you.
Must the business be BEE?
Anyone can apply. White owned or Black Owned businesses can all apply.
Can international orders be funded?
Yes, if the supplies are coming from overseas then funds can be paid to the overseas supplier.
This is my first order? Can you help?
Yes, you do not need a track record. You need a valid purchase order, to be assisted.
What profit margin must my order have?
The deal needs to have at least a 30 % margin of profit, to be considered viable.