we do what banks
won’t do for you.
We do what banks
won’t do for you.
purchase order financing
Purchase Order Financing is a funding option for businesses that need cash to purchase the supplies needed to fill a customer order. By providing funding for purchase orders, we can help your business to deliver your orders on time, in full and build a reputation as a reliable supplier.
how does it work?
Step 1: We – The X Quotient – pay your Suppliers on your behalf.
Step 2: Your Suppliers deliver the product directly to your Customer.
Step 3: You invoice your Customer.
Step 4: We – You and The X Quotient – wait to receive payment from your Customer.
Step 5: We – The X Quotient – pays you the remainder after deducting our capital and fees.
Requirements from your side:
An official Purchase Order issued by the Government, Parastatal or Large Corporate company.
We only finance purchase orders for the supply of finished goods. We do not fund performance related activities like Construction, Catering and other service type activities. (See FAQ’s section for more info)
The expenditure should be above R250,000. Should the expenditure be below R250,000 then your company’s combined annual turnover and assets should be above R1,000,000 for us to be able to assist you. (NCR mandated minimum)
the funding process
01
Primary Documents
Complete the online application and upload all necessary documents requested in the application form.
02
Project proposal
If pre-approved, we will send you a Project Finance Proposal within 24 Business hours.
03
Contracting
- Contracts drafted.
- Regulated bank account application drafted.
- Electronic/Online signature.
- We will verify/validate the Purchase Order and Suppliers
04
payment & Deliveries
- CASH ADVANCE loans disbursed
- Supplier payment and deliveries to customers.
- Invoices submitted for payment
05
Repayment
Payment receipted into the Regulated Account and the funds, due to you, will be paid into your company bank account within 24 hours.
benefits of p.o. funding
No Collateral
No collateral security needed, we only require a valid Purchase Order from a reputable institution.
speedy
Our turnaround time is much quicker than that of traditional financial institutions, you will have an answer within 24 hours!
no cash
We do not require a cash contribution from you, so you can use your cash to pay your normal day to day expenses.
on time
Deliver on time – We help you keep your promises when it comes to the agreed delivery date.
in full
Deliver in full – We help you to purchase all the goods needed to fulfill the entire order in one go, no more part deliveries.
reliable
Build a good reputation as a reliable supplier
service enhancements
only available to existing clients
01
Cash Advance
We understand that you might have urgent expenses that need to be paid and you cannot always wait the full 30 days for your customer to pay us after delivery during a Purchase Order Finance transaction. We have developed a solution to bridge the cashflow gap. If your transaction qualifies for this product feature, we will advance a portion of the proceeds from the transaction to you in the form of cash before your client has made payment. This can be used for any urgent cash requirements you may have, like rent, salaries etc.
02
Invoice Discounting
We have learned that you won’t always need our help when you get an order, and that is a good thing because it means you are growing and starting to stand on your own feet. But sometimes after using your own cash to deliver goods or provide a service to your clients, the 30 day wait to get paid becomes too much. Emergency expenses come up or you receive a new order and need to buy stock, and then you are stuck. For our existing clients – that’s you – we offer an Invoice Discounting service.
Definition: Invoice Discounting is a financial transaction in which a business sells its unpaid invoices at a discount in order to get paid immediately and avoid having to wait for payment.
So in short, in these cases we will buy that invoice which is awaiting payment from you at a small discount, and you will get the cash you need immediately.