0679999554
Purchasing Order Funding
Purchase order funding allows your business to pay suppliers for goods intended for resale or distribution to customers with a completed written purchase order. This upfront payment to suppliers ensures delivery or manufacturing of goods before receiving customer payment.
Eligibility
To qualify, your business must sell finished goods, raw materials, or components (excluding construction, cleaning, or security services) to businesses or government departments, with profit margins over 20%. Goods must be for "supply and delivery," with delivery managed by your supplier or a reputable third party.
Benefits
Purchase order funding helps your business grow without bank debt or equity sales. It supports fulfilling new customer orders when sales outpace cash flow, typically structured as invoice factoring. RM Capital purchases the payment rights, pays your suppliers, or provides payment guarantees, allowing you to accept larger orders and increase sales.
Qualifying Criteria
The funding is based on your customer’s creditworthiness and their ability to pay timely. We review the transaction details, including supplier reputation and capability.
Process
Submit the purchase order, signed appointment letter, and supplier agreement or pro forma invoice/quotation.
Provide requested business information for transaction review.
Receive approval notification and details of any required securities.
Sign the factoring and guarantee agreements, and funds will be paid to your supplier.
Once the customer pays the invoice, the funds will cover the purchase order funding, and you receive the remaining balance after costs.
For more information, Contact Us.
Even after both parties have agreed to a settlement or the courts have ordered the RAF to award
you compensation of a specific amount, it can take months before the funds you’re owed are
actually paid out.
Legally, the RAF has 180 days to complete this process.
During the time it takes the RAF to pay out, you can get bridging finance against the value of your
RAF claim.
Bridging finance can give you access to needed funds in the months you spend waiting for the
compensation you’ve been awarded.
Requirements:
You must have an Attorney
Settlement letter/ Court order
Copy of ID
Proof of residential address
Proof of banking / banking document
Contact us on 076 186 9145