Purchase Order Financing/Contract Finance is a commercial finance transaction in which Mtaji Capital advances money to a business’ supplier to cover the costs of a purchase order placed by a business’ customer.
Did you get a large order but you don’t have enough working capital to fulfill it? Talk to Mtaji Capital
How it works
- You get a purchase order from a customer and an estimate from your supplier
- Contact Mtaji Capital
- Mtaji Capital checks the creditworthiness of your Customer and supplier.
- If approved, you sign an agreement with Mtaji assigning the contract and all attendant receivables
- Mtaji Capital advances up to 70% of the purchase order cost to your supplier.
- Your supplier delivers on the order.
- You issue an invoice to your Customer who pays directly to Mtaji Capital (or based on payment terms, you trade the approved invoice under a Supply Chain Finance arrangement).
- Mtaji Capital receives the money, discounts its fees and amount paid to your supplier, and sends the balance to your bank account.