Purchase Order Funding
Do You Qualify?
You may qualify for Purchase Order Funding if your business meets the following criteria:
- At least 6 months of trading history
- An average monthly revenue of R40,000 or more
- A valid purchase order from a large company, corporate, or the South African government
Previous experience with the client is a bonus
(Figures are for example purposes and may vary by lender.)
How It Works
Purchase Order Funding bridges the gap between receiving an order and getting paid.
Lenders advance funds to help you buy the goods or materials needed to fulfil a legally binding purchase order.
The loan is based on both the creditworthiness of your buyer and your business.
Designed specifically for wholesalers and distributors who resell products to commercial clients.
Alternative lenders often evaluate the purchase order and your trading history rather than relying solely on long-standing collateral or credit history.
Common Use Cases
Purchase Order Funding is ideal when your business:
- Needs to pay suppliers to fulfil large orders
- Wants to accept new customers or contracts without cash constraints
- Seeks to grow past financial limitations while fulfilling purchase orders
- Covers supply and delivery of goods (e.g., electricity, gas, printing, wholesale)
- Covers supply of services (e.g., construction, installation, manufacturing, labour), where experience may be required depending on the type of service.
