That first big purchase order from a new client can be daunting if your business is facing cash-flow issues.
How do you fulfil a large order if your business can’t afford the upfront costs, such as buying the needed materials?
BizFunding offers purchase order finance in Johannesburg, empowering businesses of all sizes to complete lucrative purchase orders.
What is purchase order finance?
Purchase order finance is a way for small to medium enterprises to secure the funding needed to fulfil a large purchase order.
Securing large orders from new customers is often challenging for SMEs. It requires a large amount of upfront capital that they don’t have.
This type of funding allows the business to purchase the necessary materials, so they can deliver the promised products or services.
With purchase order funding, SMEs don’t have to miss the opportunity for a large order due to cash-flow issues.
Example of PO funding
Let’s say your business has secured a large purchase order from a new client. The first thing you’ll need to do is contact your suppliers to buy the necessary materials to fulfil the order.
Your supplier needs upfront payment but the new client won’t pay its invoice until you’ve delivered the order.
This initial expense is necessary but can take a large chunk out of your working capital. In some cases, you might not have enough to cover the upfront costs.
Your options are limited. You can cancel the order, which would damage your business, or you secure funding to bridge the gap until the new client pays for its order.
Some businesses would go to a bank to secure funding, but banks are strict with their requirements. You might get turned down after a lengthy application process.
With a guaranteed purchase order, BizFunding can pay your suppliers on your behalf. The purchase order is funded and BizFunding gets reimbursed when the invoice is settled.
Why consider purchase order finance in Johannesburg
Purchase order finance is aimed at a specific scenario. A business has secured a purchase order and needs the capital to fulfil it. This makes it a tailored funding that meets your business’ specific needs.
Other benefits of purchase order financing:
- easier to secure than traditional bank loans
- simple and straightforward application process
- funding can be secured within 72 hours
- no credit checks
- fixed fees with no hidden costs
- from R50,000 up to R2 million
- no minimum operating duration to qualify.
Who qualifies for purchase order funding?
Any business that has been given an official purchase order and is fully compliant with all business taxes and regulations can apply for purchase order funding.
We do fund new businesses and start-ups. However, we don’t fund business ideas. Your business must be established with a legitimate purchase order from a client or customer.
How to secure purchase order funding in Jo’burg: the first step
The first step to securing purchase order funding in Johannesburg is to get in touch with us to start the process.
Simply send your purchase order with the related quotes to info@bizfunding.co.za to secure same-day approval.
Once you have been pre-approved, simply send us the necessary FICA documentation. Once your documentation is validated, we’ll draw up the contracts and, if you’re happy with our proposal, we can go ahead with funding your business.
At BizFunding, we’re committed to providing accessible purchase order finance in Johannesburg to all businesses. Contact us on 010 157 2499 for more information or simply start the application process online.
