Purchase order finance
Purchase order (PO) finance is a short-term finance solution that provides
capital to pay suppliers upfront for verified purchase orders.
What you can expect
- Purchase Order Finance will enable your business to fulfil the order without the stress of acquiring additional working capital for the business.
- Purchase Order Finance is normally given over and above your regular banking finance, credit, loans or overdrafts, which increases your business’ financial flexibility to be able to purchase stock to fulfil your orders.
- The maximum that can be financed is 80% of the amount of the purchase order.
- Both existing and new customers can apply for this product. However, non-Absa customers are expected to open a business current account as part of the loan application requirement.
- No security is required. However, the procuring entity that you are supplying would need to sign a deed of cession for the payments to be directed to an Absa dedicated account.
- The pricing for this product is prime linked and currently it is prime plus 7%.
- Feedback on assessed application will be given within 48 hours.
- Complete purchase order application form
- Purchase order
- Quotation or pro-forma invoice from supplier
- Six months bank statement and one year financials projections
- Company profile
- Management profile