What is Purchase Order Funding?
Purchase Order Funding, also known as PO Funding, Purchase Order Finance, PO Finance, and Tender Funding, is funding that helps businesses service large purchase orders by providing funds to cover production and delivery costs before the customer pays.
How does Purchase Order Finance work?
Purchase Order Finance is fairly simple, you as a business receive an advance in funding based on your confirmed purchase order. This financial advance will help you cover your supplier costs, ensuring timely delivery and payment when the order is completed.
What are the benefits of PO Funding?
PO Funding helps businesses secure government and large corporate contracts by providing upfront capital to meet the Purchase Order requirements, allowing you to execute your project and manage your cash flow.
Is your business a good fit for PO Finance?
PO Finance is ideal for small to medium-sized businesses experiencing cash flow challenges when servicing large orders. PO Funding helps maintain your businesses growth without financial strain and significantly improves the chances of being awarded more purchase orders in the future.
How does TDF support businesses with PO Finance?
TDF has partnered with a number of financial service providers, allowing us to offer multiple PO Finance solutions, which also factor in sourcing and logistics support, making sure you always deliver on time. TDF also provides funding solutions to help you secure a tender.
How much will TDF funding partners charge?
Each application is assessed individually and the rates are calculated based on a number of factors such as; the value of the purchase order, delivery costs, how long the money will be out and how complex or risky is your contract. TDF will provide you with the best rat available
What documents do I need to apply for PO finance?
To apply for PO funding, you will need to fill in an application form which requires basic information, in addition you will need to provide some of the following documentation:
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Identity documentation
Purchase order
Supplier quotes
Bank statements
Tax compliance certificate
Is your Business eligibility for PO Funding?
In order to be eligible for PO Funding, you need to have a confirmed purchase order from a creditworthy customer, a viable business plan, and the ability to service the order within the specified timeframe. Finally, the end buyer should be able to pay the full amount due on time once you have completed the service.
Does PO Funding require good credit?
No. The funds advanced to you are specifically to deliver on a confirmed purchase order. So the money advanced to you is secured by the value and confirmation of the PO. However when it comes to riskier contracts, we do take credit history into consideration during our application process to ensure we are satisfied that no additional significant risk factors are present.
How quickly can I get funding?
TDF aims to approve the funding within 72hrs. However, the timeframe for receiving the actual funds may vary. Typical timeframe for funds to be released can take between a few days to a week, depending on process and the complexity of the order.
What costs are covered by PO Finance?
PO Finance can cover a number different costs, this includes; supplier payments, manufacturing expenses, logistics, and other project-related costs, helping your business meet service requirements effectively.
How does PO Funding affect cash flow?
PO Funding improves your cash flow by providing the necessary funds upfront to service purchase orders, ensuring that businesses do not face cash shortages at critical times.
Is PO Funding a loan?
PO Funding is not a loan. it is a financial advance based on a confirmed purchase order, this means that repayment is typically tied to the completion and payment of the order.
Can TDF help me apply or secure my next purchase order?
When it comes to applying for Tenders, TDF does not assist with applications, however we will recommend a TDF partner that can assist with putting together your application and submissions. Once you have secured your PO, TDF will assist you with the financial solutions required to service the PO.
HOW TDF
FUNDING WORKS
Get funding approval within 72hrs, in just 4 easy steps!
01
Submit Application
There are three main ways to apply for Funding
First option: Fill in our easy form online application, and our TDF support team will be in touch to finalise your application.
Second option: Call TDF and set up an appointment to visit our offices.
02
Application processing
Once you have submitted your application. TDF support team will verify that you have correctly submitted all the required documentation.
If you have not submitted everything, our TDF support team will assist you accordingly.
03
Verification Process
Once TDF has confirmed that all your documentation has been properly submitted, TDF will start the vetting / verification process.
Our vetting / verification process involves verifying all the documentation that you have submitted and making sure that all documents are legal and legitimate.
04
Funding Approval
Once TDF has verified your application. A final decision will be made regarding your approval for funding.
You will recieve an update within 72hrs, confirming if your funding application has been approved or not.
