Frequently asked questions

When do I receive the initial remittance if I use Purchase Order Finance?

The initial remittance is available as soon as the purchase order is confirmed by the buyer. At this point, up to 50% of the purchase order’s value, less the expected fees, will be paid. The remainder is paid after the goods or services have been delivered, and the buyer has accepted your invoice.

What security is needed to support Purchase Order Finance?

We do not need any form of security, either backed by your business or its directors. We need neither debentures nor personal guarantees.

What will I be charged for using Purchase Order Finance?

There are just two charges:

  1. a small set-up fee for each purchase order for which you choose to obtain Purchase Order Finance, and;

  2. a Purchase Order Facilitator fee that is calculated using the amount of the initial remittance and the number of days for which it’s outstanding.
Do I have to sign a long term contract?

No – the facility provides an initial remittance against individual purchase orders, and you can choose which purchase orders you wish to use this for.

Do I have to utilise Purchase Order Finance for all of my purchase orders?

No – you can select which Purchase Orders you want to use Purchase Order Finance for. This might, for example, be predominantly around larger orders, or when your business faces seasonal cash flow pressures.

How do I apply for Purchase Order Finance?

You will have the option ‘on screen’ during the tender process, as well as when you confirm the buyer’s award of the contract and/or purchase order.

How will I know if my business qualifies for Purchase Order Finance?

Once you submit your application, it will be assessed for suitability and you will be advised within 24 hours.

Will this affect any other forms of finance that I may have in place?

As there are no debentures involved, and you are not assigning any rights to a third party, this will not affect any existing overdraft or loan facilities that you may already have with your bank.

Do I qualify for Purchase Order Finance if I already use invoice discounting or factoring?

We are not currently able to provide Purchase Order Finance to businesses that already use factoring or invoice discounting.

Do I have to use the cash solely to fund the purchase order that I have requested Purchase Order Finance for?

No – once the cash is advanced, you can choose the most efficient way to use it in your business. We will not tell you how to run your business.

What if I have used Purchase Order Finance but find that I cannot complete the contract?

You will have to refund the amount originally advanced and any accumulated advance payment fees.

Can I repay the outstanding amount early?

No – the repayment is triggered by the receipt of the invoice settlement payment from the buyer only. However, we will provide you with the option to take a lower initial remittance in the first instance e.g., 20% or 30% of the PO Value, if you feel that a lower amount is more suitable.

I receive purchase orders that are paid on a staged or rolling basis. Can these be accommodated by Purchase Order Finance?

Purchase Order Finance has been designed to be flexible and match the needs of the supplier. Staged payments and rolling purchase orders can be accommodated.