Purchase Order Financing

You need finance to fulfill an order now?

In many cases when a corporate appoints a vendor to provide them with services or goods on a term’s basis, the vendor will find themselves with a capital deficit. Often leading to the inability to provide the goods and services. This is where Matriarch Capital steps in, providing the vendor with the finances they need to fulfil the contract with the surety of their corporate client. This allows corporates to appoint companies that are expanding, for BBEEE purposes, or to develop youth or women owned companies that lack the capital to meet the requirements.

Matriarch Capital Purchase Order Financing

If you’re a business owner worried about whether your company will have access to the capital it needs to fulfill the next large purchase order, contract or tender that comes in, the Matriarch Capital Purchase Order Financing product is the solution you need. Financing of a valid Purchase Order, and Contracts from credible entities within the private or public sector.

Our MC POF covers:

Purchase Orders | Contracts | Tenders

* Financing of a valid Purchase Order from a credible entity within the private or public sector.

Strait Forward Application Process


Submit your application pack with all supporting documents


Our diligent Team reviews the application and verifies the PO and suppliers


The application then goes to our credit committee for approval.


Once the facility is approved your facility will be paid out.

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    Purchase order (PO) financing is a type of asset-based lending that allows businesses to borrow against the value of their open purchase orders. PO financing can provide much-needed working capital to help a business cover costs until the goods or services associated with those orders are delivered.

    When a business takes out a PO loan, the lender will typically advance up to 80% of the total invoice amount. The remaining 20% is paid when the product or service is delivered, and the invoice is issued. This structure protects the lender if the customer does not pay, as they are still only out 20% of the total invoice amount. In the case of Matriarch Capital, we do advance the total amount of the purchase order as long as it is valid the application go through our whole vetting process.

    Generally, PO loans have shorter terms than traditional loans – usually around 30 days to 90 days – and come with higher interest rates. But for businesses in need of quick cash, they can be a viable option.

    By taking out a PO loan, businesses can cover the costs associated with purchasing goods or services and meet customer demand without having to wait until customers pay their invoices. This gives businesses more freedom to take on additional projects and grow their operations. Additionally, because PO financing is asset-based lending, it can be easier for cash-strapped companies to qualify than traditional loans.

    Overall, PO financing can be a great tool for businesses that need working capital fast – as long as they understand the risks involved and have an effective strategy in place to repay the loan. Business owners should also keep in mind that a PO loan is not a substitute for good financial management practices; rather it’s meant to fill temporary gaps in working capital. By taking full advantage of PO financing and its benefits, businesses can maximize their potential for success.

    A purchase order (PO) is a document that specifies the products or services that a buyer wants to purchase from a seller. It also states the agreed-upon price and other conditions of the sale. A purchase order is a legally binding contract between the buyer and seller, and should include all pertinent details of the transaction, such as delivery dates, quantities, and payment terms. It is important to remember that the terms of a purchase order are also governed by law and may vary from one legal jurisdiction to another. Buyers should be aware of any applicable laws or regulations governing their purchase agreement before signing the order. In addition, buyers should use caution when relying on verbal promises or assurances made by sellers; these commitments often prove difficult to enforce in court without a clearly written PO.

    Once a buyer has accepted and signed a PO, it is legally binding and cannot be changed without mutual consent from both parties. The seller must perform all duties as specified in the PO or face potential penalties for breach of contract. On the other hand, if there is an issue with the quality of goods received from the seller, buyers can use the PO as proof of purchase and can seek legal recourse.

    It is important to note that a PO must be in writing to be legally binding. All details regarding the sale, such as price, quantity, delivery conditions and payment terms must be included in the document. Both parties should sign and date the document before it becomes enforceable. This ensures that both parties agree to all terms of the contract and that there are no misunderstandings or disputes down the line.

    In conclusion, a purchase order is a legally binding agreement between buyers and sellers, so it is important for buyers to read through any proposed terms carefully before agreeing to them. Buyers should also ensure that all pertinent information is included in the PO and both parties are in accordance with it.

    A purchase order guaranty is a document that guarantees payment for goods or services purchased with a purchase order. The guarantor is usually the company’s accounts, payable department or a financial institution. The guaranty assures the seller that it will be paid for the goods or services provided, regardless of whether the buyer eventually pays its invoices. This can be helpful to sellers who might not want to wait until the buyer’s credit is checked and approved. It also gives the seller peace of mind that it will be paid for its goods or services, even if something happens to the buyer. Additionally, the purchase order guaranty can be beneficial to buyers who may not have a very good credit rating, or whose usual payment terms are too long for the seller. By providing a guarantee, buyers can offer more favorable payment terms and increase their chances of getting goods or services quickly. Ultimately, it is up to the seller whether or not to accept a purchase order guaranty and it should always evaluate any potential financial risk when deciding if this type of agreement is suitable for its business.

    In summary, by providing a purchase order guaranty, both sellers and buyers can benefit in different ways. For sellers it provides assurance that they will get paid even if something happens with the buyer; while for buyers it increases their chances of getting goods or services quickly by offering more favorable payment terms. The decision to accept a purchase order guaranty is ultimately up to the seller and should always be evaluated based on any potential financial risk.

    Purchase order financing can help businesses obtain the supplies and materials they need to fulfill an order from a supplier. The financing company pays the supplier for the goods, and then the business pays back the financing company over time. This can be a helpful way for businesses to get the supplies they need without having to use their own capital. Additionally, PO financing can help businesses improve their credit score and build their credit history. This is because payment terms are usually favorable and repayment can help build a company’s creditworthiness.

    Additionally, purchase order financing can help businesses fulfill orders that they might not have been able to without financial help from a third-party lender. By providing funds up-front, it allows businesses to take on larger orders more easily. This can open the door for new opportunities and potential growth for a business.

    Purchase order financing is also beneficial for suppliers as well; by working with a PO financiers, suppliers get paid earlier than if they were waiting for payment from their customers. This can help suppliers maintain a steady cash flow and reduce the risk of non-payment by customers. Additionally, PO financiers may also offer additional services that can help suppliers manage their accounts receivable, mitigate credit risks from customers, and ensure prompt payment for their goods.

    In conclusion, purchase order financing can be beneficial for both businesses and suppliers alike. It provides businesses with a way to obtain the supplies they need quickly while still allowing them to build their creditworthiness. Additionally, it helps suppliers get paid faster than if they were waiting on payments from customers.

    Overall, PO financing is an advantageous solution that helps both sides of the transaction when fulfilling orders, making it a beneficial option for businesses and suppliers alike.

    There are a few reasons why companies might offer finance against purchase orders. Often, it’s because the company wants to ensure that it’s selling its products to qualified buyers, and by offering finance, it can weed out any bad debt risks. Additionally, offering finance can be a way to entice buyers into completing a purchase, as they may not have the cash on hand to buy the product outright. Finally, some companies may offer finance in order to encourage customers to buy more expensive items or higher quantities of products. By offering finance, companies can make these sales that might have otherwise been out of reach. In essence, it’s a way to expand the potential customer base and increase sales. Ultimately, by offering finance against purchase orders, companies can benefit from increased sales and be better protected from bad debt risks. It can also provide customers with the ability to purchase items they may not have had the means to buy before.

    The use of finance against purchase order should go both ways: it is important for buyers to ensure that they understand all of their obligations and are in good financial standing to take on such an agreement. This helps both parties find success in their transaction, as well as builds trust between them. Companies should also consider any fees or interest that may be associated with the purchase before entering into an agreement.

    All in all, finance against purchase orders can be a great way for buyers to get access to products they might not have been able to afford otherwise and for companies to reach more potential customers without taking on too much risk. It’s important for both parties to understand all of their obligations before entering into an agreement. By doing this, companies can benefit from increased sales and customers can have access to products they couldn’t otherwise afford. Ultimately, it’s a win-win situation that should be explored by both buyers and sellers.

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