Yalu specialises in finding the best available finance offers for small to mid-sized South African businesses, including funding for purchase orders in Johannesburg.
We secure loan offers from an extensive network of banks, business development agencies and private lenders. Our service is completely free to your business because our fee is covered by the loan provider.
How purchase order funding works in South Africa
Purchase order funding allows businesses to accept orders that might otherwise be turned down because they don’t have the funds to cover supplies.
When a business has a purchase order from an established and reputable customer, it can apply for funding to pay suppliers. Once the terms of a loan have been agreed, the finance company pays the supplier directly.
When the order has been delivered, the purchase order finance company collects payment from the end customer, takes out what it is owed and fees, and the remainder is paid to your business.
What’s special about our PO funding
The main benefit of getting purchase order funding through Yalu is we do the work for you, saving time and stress.
Yalu streamlines the process of finding and securing funding for your business, making it extremely quick, effective and convenient for established businesses to access funding.
We offer only unsecured finance, meaning that there’s no need to provide collateral, so your business or personal assets are not at risk.
Also, our service is free. You don’t pay us anything. We’re paid by the lender.
Maximum loan size for a purchase order
Purchase order loans can be for up to 100% of supplier costs. At Yalu, we arrange financing from R50,000 up to R6 million.
Case studies: how Yalu PO funding helps local businesses
Many South African businesses have used purchase order funding for an injection of funds to help complete orders and boost growth. Here are three examples.
How PO funding helped a Jo’burg manufacturer
A Jo’burg furniture manufacturer won an order to supply furniture to a prestigious hotel chain. The contract meant that payment was only due to be made on full delivery of the furniture. Without funding for supplies, the manufacturer would not be able to proceed.
The manufacturer applied for purchase order funding of R1.2 million, which was paid directly to its suppliers. The furniture was made on time and delivered to the hotel chain, which paid the funder directly. After the loan and fees were repaid, the outstanding amount was paid to the furniture manufacturer.
How PO funding helped a Sandton-based importer
A Sandton importer of industrial machinery won a contract to supply a South African mining company. Payment for the machinery would only be made after delivery.
The importer applied for purchase order funding of R2 million through Yalu. Within three days, funding had been secured and paid directly to the international supplier.
The importer delivered the industrial machinery on time and the mining company paid the finance company, who took its fees before paying the remainder to the importer.
How PO funding helped a Jo’burg supplier
An established stationery supplier won a valuable contract with the provincial education department. The contract came with guaranteed payment terms but a long lead time.
Without financing, the stationery supplier would not be able to fulfil the contract. It applied for PO financing for R1.3 million through Yalu, which it received within two days. The stationery was supplied and, when the education department paid the financer, it paid the stationery supplier.
How to apply for purchase order funding in Johannesburg
Any business that has been in operation for more than a year, has an annual turnover (through credit card sales, EFTs, debit orders or POS payments) of more than R1 million and is CIPC certified can apply for purchase order funding in Johannesburg.
The application process is online, so it’s simple, fast and effective. Once you have submitted your application, it will be reviewed. A loan manager will contact you to confirm your information and let you know if anything further is required.
Documents you will need to supply include:
- CIPC registration
- consent to credit search
- copy of lease agreement or bond
- copy of director’s ID
- latest VAT statement
- six months’ bank statements.
Applications for funding for purchase orders in Johannesburg are processed and approved quickly. Apply online today.
