LPO Financing
LPO financing allows clients who have obtained purchase orders or letters of award to deliver goods and services or to carry out contractual works. The full meaning of LPO is Local Purchase Order
Types of Purchase Orders
There are four main types of purchase orders discussed below:
- Standard Purchase Order
This is a type of purchase order from the buyer to the seller of the product when you are certain about the order details such as delivery date. - Contract Purchase Order
When the use of the product by the business varies with time, then the contract purchase order can be used. It is intended for use for a specific period of time usually one year. - Blanket Purchase Order
This is a type of purchase order from the buyer to the seller of the product when you are certain about the order details such as delivery date. - Planned Purchase Order
Planned purchase order is used when the delivery date is unknown but the other details such as the quantity of the product is known and the purchases are long term.
Requirements for LPO Financing
Only LPOs of blue chip companies and well recognized organizations with a good credit history will be considered.
- All LPOs must be confirmed from the issuing company before processing
- The applicant must show evidence of previous jobs performed and payments received or demonstrable ability to execute the job.
- Payment domiciliation will be required in the absence of which an Irrevocable Letter of Authority received and acknowledged by the receiving bank will be considered.
- The borrower will be required to make a 10-30% contribution to the cost of executing the LPO.
- All LPO Finance above N500, 000 will require additional collateral apart from payment domiciliation and cash contribution
- Tenor for all LPO Finance may not be more than six (6) months.
To Apply for the LPO Financing, Call 07010002309 or Send us a Whatsapp Message.
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