What is Purchase Order funding and who can apply for it?
September 7, 2017
Purchase order financing is a short-term commercial finance option that provides capital to pay suppliers upfront for verified purchase orders. Businesses avoid depleting cash reserves or declining an order because of cash flow challenges.
Entrepreneurs who have been awarded tenders/contracts, who have in their possession a valid award letter or Purchase Order (with a Purchase Order number that can be verified) may apply for Purchase Order funding.
Please note: The Business Place Network makes use of an external ecosystem of financiers, and as such there is no guarantee that funding would be awarded.
Purchase Order funding compliance documentation required are as follows:
PURCHASE ORDER/ CONTRACT/ TENDER FINANCE/INVOICE DISCOUNTING
- Copy of appointment letter/Contract and/or Purchase Order
- Copy of invoice/s to be discounted (Must be from government, government departments, municipalities, parastatals or established corporate companies)
- Quotations/ Pro-Forma Invoices
- Latest 6 months bank statements
- Valid tax clearance certificate
- Summary of CSD Registration (if registered)
- Latest proof of business address(lease, Sars statement, etc)
- Latest proof of address for the director/s
- Latest certified id copy of director/s