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Business Loans: Purchase Order Financing
Business Loans: Purchase Order Financing
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Written by Nosa O
Updated over 3 months ago

Ever landed a massive order but didn't have the money to make it happen? That's where Purchase Order Financing comes in. It's a short-term loan that helps you deliver on large orders without breaking the bank.

How it works:

  1. You get a big order from a reputable buyer

  2. You apply for a loan from us (just email [email protected])

  3. We check if it's doable

  4. If approved, we give you the money (usually 80-90% of the order value)

  5. You make and deliver the goods

  6. The buyer pays into your Kuda account

  7. We take back our loan plus interest

Who's it for?

  • Wholesalers and distributors

  • Manufacturers

  • Importers and exporters

  • Startups with big opportunities

  • Established businesses looking to grow

The nitty-gritty:

  • Loan amount: Depends on your order size

  • How long you get the money for: Usually 45-60 days

  • Interest rate: 30-35% per year

  • How you pay it back: All at once when the buyer pays you

  • What you can use it for: Just for making the goods for this specific order

Things to know:

  • We usually only finance orders from well-known, trustworthy buyers

  • Each loan is for one specific order

  • You can get bigger loans for future orders if you do well

  • You can have multiple loans for different orders at the same time

Fees:

  • Processing fee: 1% of the loan amount, paid upfront

  • Insurance fee: 0.5-1% of the loan amount, paid upfront

What we need from you:

  • A personal guarantee from you (the business owner)

  • A post-dated cheque covering the loan amount plus interest

  • The buyer's payment must come to your Kuda account

Ready to take on that big order? Email [email protected] and let's get started!

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