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LOCAL PURCHASE ORDER (LPO) FINANCING

LPO Financing is to enable SMEs access funds/working capital to pay the suppliers from an order received from a well-established, credit worthy corporate.

FEATURES

  • Interest bearing
  • Maximum tenor of 180 days
  • Maximum of 70% of supply order given as loan
  • Irrevocable tripartite domiciliation of agreement in respect of contract proceeds executed by beneficiary company, Dangme Rural Bank and the employer company.

BENEFITS

  • Opportunity for your company to accept new business from clients even when you do not have the operating capital on hand to fund the job
  • Gives access to working capital
  • Supports business growth and expansion
  • Gives companies an easy way to cover their operational costs
  • Competitive pricing
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REQUIRED DOCUMENTATION

  • Account History: Six (6) to twelve (12) months Bank Statement is required from clients with account relationship with other Banks.
  • Bank statement that shows evidence of lodgments of proceeds of past contracts
  • Certificate of registration of business entity.
  • Duly completed loan application form.
  • Original Purchase Order contract documents duly executed by respective parties from principal.
  • Submission of formal request letter.
  • Client must present the LPO to the bank.
  • Board Resolution authorizing the borrowing and accepting the offer (where applicable)
  • Submission of Order/Contract documents.