What is Purchase Order Funding?
A purchase order is a commercial document that is issued by
an entity’s purchasing department when placing an order with its vendors or
suppliers. Commonly, medium to large enterprises issues purchase orders to
other businesses to ensure the correct procurement of a particular service or
product. In South Africa however, the government is the biggest buyer and
issuer of purchase orders with a spending of more than R500 billion per year as
part of its conscious effort to try to stimulate the growth of small businesses.
Small businesses however do not always have the means and financial capability
to either procure the ordered goods or render the necessary services in
advance, knowing that they will only be paid a few weeks or months after fulfillment
of the purchase order.
Purchase Order Funding, therefore, entails that funding is provided to the
business that was issued with a purchase order to put them into a position to fulfill
the purchase order and allow the business to be paid. The Purchase Order Funding
company often pays the suppliers of the products and or services directly and
works with your business to ensure that your business gets paid by your debtor
that issued the purchase order.
Does my business qualify for Purchase Order Financing?
Although ProfitHub considers all proposed transactions at its own merits, transactions than conform to the following minimum criteria will take preference over others:
Here are the following prerequisites to qualify for a Purchase Order through ProfitHub:
- The client that issued the Purchase Order must preferably be a governmental institution, parastatal or listed and a credible entity.
- The Purchase Order value payable by a client must be a minimum of R250 000 or more.
- The Gross Profit of Such Purchase Order must be a minimum of 30% or more.
- The delivery date of the goods must be reasonable and afford enough time to ProfitHub and relevant suppliers to complete the order.
If you/your business find yourself in the lucky position of meeting all these requirements, that means that your Fast Purchase Order Funding is only a simple click away!
Simply Apply Online today! And we’ll get back to you.