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Purchase Order Financing

Product Description

Purchase Order Financing is a short-term funding option for businesses that need cash to fulfill customer orders. It allows companies to receive funds based on purchase orders received from customers, enabling them to pay suppliers and cover production costs.

interest earned annually
Up To 0 %
minimum opening amount
P 0 .00
on interest earned
0 NO TAX

Product Features

  • Repayment aligned to the contract period
  • Structured to the contract
  • Source of repayment: contract financed
  • Off-taker should be on BSB approved off-taker list
  • Facilitate delivery of contract at hand
  • Pricing aligned to segment

Pricing

  • Origination fee: 1.12%
  • SME clients: prime +6
  • Commercial clients: prime +5

Entry Requirements

  • Valid purchase orders from creditworthy customers
  • Business incorporation and registration documents
  • Financial statements and records to assess creditworthiness
  • Agreement with BSB on the terms and conditions of purchase order financing

Target Market

  • SME clients
  • Commercial clients

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