Purchase Order Finance

The Government has continued to make efforts to strengthen purchases from local enterprises and as per the presidential directive cab 34(b)/2014, local authorities and parastatals are required to purchase certain products from citizen suppliers. While this noble initiative aims to empower local suppliers and strengthen our economy, many SMEs battle to meet the minimum requirements of large financial institutions. This is when BSN Bonds recognized a need in the market for a financial service provider that can provide tailored financial solutions that to support SME’s in order to realize value and reach their business objectives.

Purchase Order Finance

Under our Purchase Order Finance program we fund 100% of your quotation and up to 80% of the GPO value. We use a simplified application process which entails 3 easy steps:- 1. Brief application form (2) Submission of documents and (3) Signing of agreements. Our maximum loan period under this product is 30 days from signing date.

All government purchase orders submitted to us are vetted by the office of the Accountant General and loaded on the government accounting system “GABS” for direct payment. We are a registered financial services vendor at the Ministry of Finance. All clients are required to sign a deed of cession agreement to facilitate direct payment.

Our Vision

Our vision is to build loan services brand which will become the lead choice for smaller businesses and corporate clients in the whole of Botswana. Our vision shows our zeal, values, integrity, security, service, excellence and teamwork.

Terms & Conditions

We Accept Purchase Orders From

Government Ministries & Departments (‘GPO’)
Councils & landboards ( ‘LPO’)
Parastatals & Reputable private companies (PO’s)

We Accept Quotations From

Reputable entities
Registered entities
Credible companies.

Requirements

We Require The Following

CIPA Documents & Certificate of Incorporation
Copy of OMANG (directors)
Resolution from company secretary to state funding purpose and amount.
Copy of Order (GPO/LPO/PO)
Quotation from suppliers

Benefits

Integrity
Service
Customer service
Affordability
Efficiency

Advantages

It’s much easier to get than bank financing
It can be set up quickly
The credit line can grow with your revenues
It’s available to small companies (and start-ups, in some cases)
Credit is limited only by the capabilities of your suppliers, the credit quality of your customers, and your ability to execute orders

Who uses it?

PO financing is designed for growing businesses that want to fulfill large orders. They have little access to working capital and/or poor cash flow. The types of businesses that usually qualify include:

Agents
Distributors
Wholesaler/reseller
Importer/exporter

Whether a start-up or an established business, we’ll listen to your story and work our program to meet your needs. Unlike other lenders, we will fund an entrepreneur’s first transaction. As a matter of fact, 50% of our new clients receive funding for their first transaction.

How does it work?

How Does it Work?

Your business receives a large PO from a new or existing customer. Your supplier needs upfront payment, but the customer invoice won’t be paid for 60-90 days after shipment is received. This creates a classic working capital gap. Without the money, you risk losing the order and customer confidence. To secure money, many companies will apply for traditional financing but cannot satisfy bank requirements. Even if they do, banks base their lending on a company’s past performance. That means the bank will want proof that you can handle fulfilling such a large order.

With a verified PO, purchase order financing can support a single transaction and/or grow with your company’s accelerated funding requirements. We pay the suppliers directly via a financial guarantee or cash. Your business fulfills the order; with proceeds being distributed after shipment is received.

How is it Different

How is it Different From Traditional Lending?

A traditional lender, like a bank, is bound by government regulations. Loan requirements typically include collateral and 3 years of financials. Don’t forget, they’ll also want proof you can handle a large increase in business. Banks can’t extend the credit you need if you don’t have proof.

A purchase order financing company is an alternative lender that follows their own rules in lending. Their primary focus is verifying the quality of the contract by looking at the credit worthiness of your customer.