Funding Your Future (Part 3) A Series on SME Finance Options in South Africa: Purchase Order Finance

Turn big orders into big opportunities with Purchase Order Finance!

Continuing our funding series for South African SMEs, this week we’re focusing on Purchase Order Finance, a smart solution for businesses that receive large customer orders but don’t have the upfront capital to fulfil them. This type of funding helps bridge the gap between receiving a big order and delivering it, so you don’t have to turn down opportunities due to cash flow constraints.

How It Works (in simple steps):

You receive a large order from a reputable customer.

Apply for PO finance on our website with details of the order and supplier quote.

The financier pays the supplier directly to deliver goods.

Once the customer pays, you repay the financier, minus their fee.

You keep the profit and strengthen your cash flow.

Why It Works:

Get funding to pay suppliers upfront without dipping into your working capital, fulfilling large orders without delay.

Enables you to take on larger contracts than your current cash reserves would allow, supporting your business growth.

The order itself is often the security, making it ideal for asset-light businesses, therefore no collateral is needed.

It's project-specific finance that gets paid off once the customer pays, built specifically for a purpose and when short term finance is needed.

Real-World Example: A KwaZulu-Natal-based manufacturing SME secured a large order from a national retailer but lacked the funds to pay their supplier. Using purchase order finance through an alternative lender, they fulfilled the contract, built credibility, and won repeat business, without sacrificing their operational cash flow.

Key Takeaway: When opportunity knocks, cash flow shouldn’t be the reason you say no. Purchase Order Finance lets SMEs grow confidently by turning large orders into fulfilment-ready projects, without delay or debt.