Microfinance & Fintech
Purchase Order Funding for South African SMMEs
You won the order. Threerae funds the gap between winning it and getting paid for it — R10,000 to R100,000 against a confirmed purchase order from a credible buyer, on a strict 30-day term.
What It Is
The Order Is The Asset
Winning a tender or a large order should be the good news. Too often it is the start of the problem: the buyer pays on delivery, the supplier wants paying up front, and the business that just won the work cannot fund the gap. Capable businesses turn down orders they could have delivered — or worse, accept them and fail.
Purchase order funding closes that gap. We advance working capital against the confirmed order so you can pay your supplier and deliver, and we recover through cession of the payment due on that order. The transaction is what we are underwriting, which is why a business without a long credit history can still be funded if the order is real, the buyer is credible and the margin is there.
What it costs, stated plainly
Our fee is 15% per deal over a strict 30-day repayment period, disclosed in writing before you commit. Price it into your quotation to the buyer. If the gross margin on the deal cannot carry the fee and still leave you a profit, the honest answer is that the deal should not be funded — and we will give you that answer rather than write business that damages you.
The Details
Purchase Order Funding At A Glance
Amount
R10,000 to R100,000 per deal, with exposure capped at R250,000 per company under our current self-funded model.
Term
A strict 30-day repayment period, settled from the buyer's payment on delivery via cession rather than out of your general cash flow.
Fee
15% per deal, disclosed in writing before you commit. Price it into your quotation to the buyer so the margin carries it.
Security
Cession of the payment due on the funded order. We underwrite the transaction, the buyer and your ability to deliver.
Buyers We Fund Against
Government at all spheres, state-owned entities, municipalities, mines and reputable corporates — buyers whose payment is credible.
Repeat Use
Around 80% of clients return, typically about 30 days apart. A clean repayment record makes each subsequent deal faster to process.
Qualifying
What We Need To See
You qualify if
- You are a registered, compliant South African business
- You hold a valid purchase order from a credible buyer
- The deal carries a gross margin of at least 15–20%
- You can demonstrate the ability to deliver what the order specifies
- You are willing to cede payment on the order
- You have no major credit impairments
Have these ready and you move faster
- The confirmed purchase order itself
- Company registration and compliance documents
- A supplier quotation matching the order
- Recent bank statements
- Evidence of the margin in the deal
- Proof of prior delivery on similar work, where you have it
Incomplete documentation is what slows applications down, almost every time. It is also the part entirely within your control.
How It Works
From Order To Funded
We assess the order, the buyer and the margin rather than putting your business through a balance-sheet exercise it will fail for reasons that have nothing to do with this deal. If the transaction works, you get written terms setting out the fee, the total repayable and the repayment date. Once cession is in place we settle your supplier so you can deliver, and the deal closes when the buyer pays.
Threerae is a registered credit provider in terms of the National Credit Act 34 of 2005. Applications are subject to assessment and credit checks, and every cost is disclosed in writing before you commit.
Questions
Purchase Order Funding FAQs
What is purchase order funding?
Purchase order funding is working capital advanced against a confirmed order you already hold, so you can pay your supplier and deliver. It is not a general business loan and it is not assessed like one — the transaction is what is being funded, so the credibility of the buyer, the margin in the deal and your ability to actually deliver matter more than your balance sheet history.
How much can I access?
Between R10,000 and R100,000 per deal, with exposure capped at R250,000 per company under our current self-funded model. The amount advanced is assessed against the specific order, the buyer and the margin in the transaction.
What does purchase order funding cost?
Our fee is 15% per deal over a strict 30-day repayment period, disclosed in writing before you commit. Price the fee into your quotation to the buyer — if the deal's gross margin cannot carry it and still leave you a profit, the deal should not be funded and we will tell you that rather than write it anyway.
Do I qualify?
You need to be a registered, compliant South African business holding a valid purchase order from a credible buyer — government at any sphere, a state-owned entity, a municipality or a reputable corporate. We look for a gross margin of at least 15 to 20 percent on the deal, demonstrated ability to deliver what the order specifies, willingness to cede payment on the order, and no major credit impairments.
How is payment recovered?
Through cession of the payment due on the order, so settlement comes from the buyer's payment on delivery rather than out of your general cash flow. Repayment is on a strict 30-day term.
Can I use it more than once?
Yes, and most clients do — around 80% of our purchase order funding clients return, typically about 30 days apart as each deal settles and the next order lands. A clean repayment record makes each subsequent application faster to process.
What slows an application down?
Almost always documentation. An order that is not formally confirmed, company compliance documents that are out of date, a supplier quotation that does not match the order, or a margin that cannot be evidenced. Having the order, your company documents and your supplier quotation ready when you enquire is the single biggest thing you control.
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Next Step
Talk To Threerae
Send us the order, who issued it and what your supplier needs paid. We will tell you quickly whether the deal is fundable and on what terms — including when the honest answer is that the margin cannot carry the cost. If you refer SMMEs through a procurement community, supplier network or industry association, mention that: we work with partners on a referral basis.
Compliance Notice
Threerae is a registered credit provider in terms of the National Credit Act 34 of 2005. All lending applications are subject to affordability assessment and credit bureau checks. We lend responsibly.
Send An Enquiry
No commitment. We just need enough to start the conversation.