Are You Looking For Extra Capital For Your Business? Here’s a Guide to Applying For Local Purchase Order (LPO) Financing in Nigeria
Now, Imagine you are a furniture wholesaler who just acquired a new customer that wants you to supply close to 500 units of new furniture to their office building. The customer has confirmed this order through a local purchase order, which is a contractual document indicating the quantities of products’ orders and the agreed prices.
Unfortunately, your business does not have enough funds to procure and deliver these goods at the agreed date. And although this new contract could help your business earn more capital to expand and increase your supply capabilities, at the moment you are constrained by limited capital. A good way to solve this problem is to apply for LPO financing from your financial institution.
What is LPO Financing?
Local Purchase Order is a capital advancement awarded to sellers and businesses who do not have the required capital to complete a customer’s purchase order.
How Does LPO Financing Work?
Local Purchase Order Financing is usually a short-term and comes with a flat interest rate. The amount awarded is dependent on the capital needed to fulfil your customer’s order.
To obtain LPO financing, you will need to provide a verified local purchase order issued by your buyer with the details of their intended purchase.
How Can LPO Financing Benefit Your Business?
- It is quicker to obtain than a traditional bank loan
- Can be obtain without strong credit history as it based on the credit-worthiness of their buyer
- Benefits small and new companies
- Helps your business grow without loan debt
- Allows your business take advantages of sales opportunites
Features of LPO Financing by CIT MIcrofinance Bank
- Access to capital between N500,000 – N20m
- 5% flat interest rate
- 60-180 days tenure
- Order payment must be domiciled in your CIT Microfinance account
How to Apply for LPO Financing with CIT Microfinance Bank?
Here’s how our simple and easy guide to applying for LPO financing
STEP 1: Fill out the online application form
STEP 2: Upload documents and verify your identity
STEP 3: Once approved, expect to receive funds within 48 hours
Say goodbye to capital constraints. Visit citmfb.com/loan/cit-sme-loan/ and apply for a purchase order financing today.