1) Q: How much money can I access to enable me execute a supply contract?
A: Up to 80% of the contract execution cost. We expect that the borrower understands fully well, all costs required to execute the contract.
2) Q: What collateral do I need to pledge to access this finance?
A: Only a personal guarantee will do. However, the bank will ensure that the payment proceeds from the contract employer are domiciled prior to availing the facility.
3) Q: Can purchase orders from any company be funded?
A: Yes, we can fund purchase orders from any reputable company that has a good history of timely payment and are known to be credit worthy.
4) Q: What if I have funded the contract and I just need some funds pending when payments are made?
A: The invoices endorsed by the contract employer can be discounted by the bank or in some cases entirely bought over by the bank. Customers can access up to 90% of these invoices, and with some special arrangement, customers can access the entire value of the invoice less the cost of finance.
5) Q: What are the finance charges that apply?
A: The charges differ with respect to transaction type and the profile of the contract employer. With the full involvement of the contract employer, at the moment the total finance charges can be as low as 1.5% only for a 30day financing period; however, these rates are never static.
6) Q: How long do I need to operate my account with the bank before I can access a loan to fund my contract or to discount my invoice?
A: You do not need to be a prior customer of the bank. The relationship can begin on the back of the contract finance request.
7) Q: What are the major requirements for one to be qualified to access an LPO finance facility?
A: It is expected that the applicant is knowledgeable of the business, and has some form of equity to contribute towards executing the business. It is also expected that such client has a good credit history and that the contract employer is reputable and known for honoring their payment obligations.