PURCHASE ORDER FUNDING
Unlock opportunities for growth with the capital you need
Up To R5 Million In PO Funding To Fulfill Large Orders
Purchase order funding is an innovative financial solution tailored for businesses that face challenges in fulfilling large customer orders due to cash flow constraints. It’s a way to leverage incoming orders to obtain the necessary capital, enabling businesses to purchase inventory, cover manufacturing costs, or manage shipping without dipping into reserves. This service is ideal for growing businesses seeking to expand their market reach without straining their existing financial resources. By understanding and utilizing purchase order funding, companies can confidently accept larger orders and accelerate their growth trajectory.
Fast Facts About PO Loans:
Transaction Range
Offers funding from R250,000 to R5 million per transaction.
Fast Feedback
Provides feedback on applications within 48 hours
Quick Payouts
Ensures payouts are made within a few days of approval.
Up To 100% Funding
Can cover up to 100% of the supplier costs in a transaction.
Flexibility
Suitable for various industries and transaction sizes.
Business Growth Support
Ideal for businesses looking to fulfill large orders and expand operations.
Understanding PO Finance
Purchase order (PO) funding is a financial solution for businesses facing cash flow issues when fulfilling large orders. For example, a business receives a large order worth R1 million but lacks the funds to produce the goods. With PO funding, the business can receive up to 100% of the funds needed (in this case, up to R1 million) to pay suppliers and manufacture the products. The funding company pays the suppliers directly, and once the order is fulfilled and the client pays, the business repays the funding company. This solution allows businesses to accept and complete large orders without the need for substantial cash reserves.
Benefits of PO Loans
The benefits of PO Funding include improved cash flow by providing immediate working capital, enabling businesses to fulfill large orders without financial strain.
It also allows for growth without diluting equity or incurring debt, and businesses can accept larger orders, leading to increased revenue and market presence.
Additionally, it helps in building stronger supplier relationships by ensuring timely payments.
Application Criteria
Unlike other kinds of business finance, the barriers to entry for PO funding are remarkably low. You do not need any trading history or financial statements to apply. Your application is assessed on the strength of your deal and the ability of the customer to pay your invoice.
Frequently Asked Questions
What is the minimum PO value?
The minimum deal that lenders are willing to fund is R250 000.
What is the maximum deal value?
Orders under R5 million are eligible for PO finance.
How are tenders assessed?
Tender deals are evaluated based on the viability and credibility of the tender, including the business’s capacity to fulfill the order.
Is security required?
Interest rates may be Usually, PO funding doesn’t require traditional collateral as the purchase order itself serves as security. than secured loans due to the increased risk to lenders.
This is my first order, can you assist?
Funding for a first-time order is possible, depending on the overall strength of the deal.
APPLY FOR TRADE & INVENTORY FINANCE
This form applies to the following bridging loan categories:
Trade and Inventory Funding
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