johannesburg purchase order financing specialists

At BizFunding, our team of Johannesburg purchase order financing specialists can help your business get the funding it needs to fulfil purchase orders.

What is purchase order financing?

Purchase order financing is funding against a purchase order. BizFunding provides you with working capital to pay suppliers, staff and all running costs so that your purchase order can be fulfilled.

But we don’t only give your business a purchase order loan. We also give side-by-side assistance and the expertise and knowledge to execute any purchase order going forward.

How purchase order funding can help SMEs: a case study

Purchase order financing can help SMEs by giving them the capital and expertise to fulfil an order timeously. They can take on new orders without worrying about supplier costs.

Consider these two scenarios.

Case study one

A small business manufactures custom-designed sportswear. It is awarded a purchase order by a local professional rugby franchise to supply kit.

The order is worth R250,000. It’s a high-profile order and a great financial boost for the company. However, the company needs R130,000 to purchase supplies, in order to fulfil the order. The rugby franchise won’t pay until 30 days after delivery of the kit.

Here’s how purchase order financing can help. The business presents the finance provider with the official purchase order for R250,000 worth of customised kit. It verifies the purchase order and the rugby club’s creditworthiness.

Provided the request is approved, the finance provider goes ahead and pays the supplier. This makes it possible for the company to fulfil the order on time.

Thirty days after delivery, the rugby club pays the agreed R250,000. The amount payable to the finance provider is deducted and the remaining sum is released to the business.

Case study two

A new floristry business receives an order worth R150,000 to supply flower arrangements to a five-star hotel in Johannesburg for the Christmas season. To complete the order, the florist must buy flowers, foliage and seasonal décor costing R80,000.

The new business doesn’t have cash or credit and must pay the suppliers upfront. Purchase order financing allows the florist to pay suppliers and complete the order.

The funding is repaid from the proceeds of the purchase order when the client pays the invoice within a maximum of 90 days.

How purchase funding works with BizFunding

It takes just three steps to get purchase order funding with BizFunding.

  1. Apply online by giving us the details of the funding you need and the purchase order you’d like to get funding against.
  2. Supply the relevant documents (see below), so we can validate them and draw up an agreement.
  3. Accept our proposal, and we start paying your suppliers and funding your business straight away.

We will pay your whole purchase order – up to R2 million. Unlike banks and other lenders, we partner with your business on a profit-sharing model, with one of our dedicated agents working side by side with you.

Our solution makes funding safe, simple and convenient, so your business can thrive and grow.

Who we help

Any business, including a small business or start-up, can secure purchase order financing from BizFunding if it has a qualifying purchase order or award letter. The business must also be:

  • registered
  • tax compliant
  • able to present a suppliers’ quotation
  • able to supply FICA documentation.

You can apply for funding with BizFunding even if your business is relatively new, providing you have the correct documentation and meet the minimum requirements.

BizFunding offers purchase order financing to companies not just in Johannesburg but elsewhere across South Africa too.

Applying for purchase order financing

BizFunding is a Johannesburg purchase order financing specialist that offers up to 100% purchase order financing for SMEs. Apply in minutes and receive a same-day proposal.

For more information, call us on 012 001 0095 or go ahead and apply online now.

If you are a business owner on the road to success, or need funding to help start new projects or purchase orders, we can help you!

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