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 Community 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.