Purchase order funding
Expand your business with the financing of a valid purchase order from a credible entity within the private or public sector.
Purchase order financing allows you the flexibility to pay your suppliers upfront to fulfil your order before receiving payments from your customers.
Some of the Benefits
Flexibility
Access funding that allows you to pay your suppliers upfront
Available financing
Get financing for purchase orders between R300 000- R5 million per transaction
Fast feedback
Get approval on your application within 24-48 hours
Frequently asked questions
1. What is purchase order funding?
This type of funding uses a purchase order or contract deal as a guarantee to find financing for a business. The purchase order is typically secured from a larger sized organisation and is used to secure finance from a third party. It allows a small business to acquire the goods they need, even if they do not have the funds for it at the time.
2. Who is ProfitShare Partners and what is their relationship with Standard Bank?
ProfitShare Partners is an organisation that offers SMEs the ability to partner on big deals by delivering a business funding solution that will assist them in helping their business grow.
Standard Bank has partnered with ProfitShare Partners to offer a purchase order funding solution for Standard Bank business customers.
3. How does a Standard Bank business customer apply for purchase order funding?
Customers can use our BizConnect site to search for ‘alternative funding’ and look for the ProfitShare Partners page and apply by clicking the “apply now” button.
4. How does one qualify for a purchase order funding?
Customers who qualify for a purchase order should meet the following criteria:
Submit a valid purchase order between R300 000 and R5 million. ProfitShare Partners will provide an obligation free financing quote and you can agree to the quote, if you wish.
Submit a valid purchase order between R300 000 and R5 million. ProfitShare Partners will provide an obligation free financing quote and you can agree to the quote, if you wish.
5. What are the benefits of purchase order funding?
Unlike traditional funding that follows credit processes (like using your business’s financial statements), the main guarantee that is sought in the process is the purchase order from the issuer. This benefits SMEs that have not yet developed credit worthiness or do not have sufficient financial records to back up this funding.
Another advantage is that typically if all documents required are valid, the process is fast and efficient, and funds are made available to fulfil the contract quicker.
6. Can I approach ProfitShare Partners directly instead of going through this Standard Bank partnership?
Yes, you are welcome to go directly to the partner, however, the partnership between Standard Bank and ProfitShare Partners provides preferential rates through this online application process, which may not necessarily be available otherwise.