Purchase Order Loans

Purchase Order Funding

Do you have contract to supply goods but cannot execute this because you are short of cash?

We can help by facilitating 100% funding of your Purchase Orders (PO’s).

These orders can be from South African municipalities, government departments, private companies and even overseas suppliers.

What is Purchase Order Funding?

These are funds that are made available to purchase goods, so that you can execute an order that you have received. The funding partner takes a risk in paying in advance for the goods that have been ordered, until he has been paid back. To compensate for this risk, the lender will charge a fee or take a share of the profits or charge interest on the funds advanced or a combination of these. You will be advised of the deal structure before you accept the terms and conditions.

What is Purchase Order Finance (PO Finance)?

This is an advance payment, that is paid to a supplier of goods, where a person or company has a valid and binding supply contract. The purchase order is ceded to the funder, who pays for the goods upfront and then waits for payment of the goods. The funder is at risk until the purchaser has paid the debt back. A ‘financing agreement’ or ‘purchase order loan agreement’, is entered into by the equity funder and the person that holds the supply contract (PO). This ensures that the lender or equity partner, will get their money back and the holder of the supply contract gets his or her money.

100 % DEAL FUNDING AVAILABLE

  • No risk to you.
  • No balance sheet required
  • No previous trading history
  • No Annual Financial Statements needed
  • Any credit score
  • First deals welcome

The Process – 3 Easy Steps

Valid Purchase Order:

All you need, is a genuine binding contract from either government,
municipalities or a private companies.

Submit Details:

You submit the deal details online, an assessment is undertaken and a proposal submitted to you.

Deal Proceeds:

If the proposal is acceptable then an agreement is signed and the transaction takes place.

What is Tender Funding?

Equity funding to finance business transactions for businesses that cannot
access money from normal 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 companies have a solution to assist grow the South African tender businesses.

Frequently Asked Questions

How do I apply?

Click Here

How long does it take to get an approval?

Responses within 2 working days and 7 working days to facilitate the deal.

What is the smallest deal size?

R 250 000 is the smallest amount that can be funded.

What is the 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 to offer security?

No security is needed to access order funding we can arrange.

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 order finance?

Yes, it is possible to finance state, municipality and regional government orders and private company orders too.

How long can the deal before?

From 30 days to max 90 days.

What interest rate is charged?

No interest is charged, there is a profit share. The lender takes the financial risk and will share in the profits with you.

Does the busines have to be BEE?

Anyone can apply. White owned or Black Owned businesses can all apply.

Can international deals be funded?

Yes, if the supplies are coming from overseas then funds can be paid to the overseas supplier.

This is my first deal. 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 PO have?

The deal needs to have at least a 30 % margin of profit, to be considered viable.

For Supply Chain Finance, Trade Funds, Import Finance, Invoice Discounting and Inventory Finance CLICK HERE

By submitting this form, I acknowledge and accept that this enquiry is submitted to the owners of this website and to third parties, to whom I give permission to contact me to try and assist and that I understand that there is NO GUARANTEE that a loan will be approved or granted; nor attended to within a specific time period.