LPO Financing FAQs

LPO financing is a short-term credit facility designed to help businesses fulfill supply orders or service contracts. Instead of depleting your own cash reserves to buy raw materials or stock, we provide the necessary capital. The loan is typically settled using the proceeds from the invoice payment once the job is completed.

Not necessarily. The facility is designed to be self-liquidating, meaning it is repaid in a lump sum once your client pays the invoice. However, if your client pays earlier than expected, you are welcome to settle the facility immediately to reduce your interest costs.

We are industry-agnostic. Whether you are in construction, IT, healthcare, or general supplies, we focus on the validity of the LPO and the creditworthiness of the issuing entity rather than the specific sector.

The standard term is 60 days. However, we understand that payment cycles can vary, so we offer an extension of up to 90 days upon request and review.

Absolutely not. We view early repayment as a sign of a healthy, well-managed business. We only penalize "bad behavior," such as willful non-payment or breach of the facility terms.

To ensure a smooth approval process, please provide the following:

• Valid LPO/Contract
• Business Profile
• Bank Statements (6-12 months)
• Recent Financials (Management or Audited)
• Arrangement Fee: 170,000 UGX (waived for members)
• Management & Insurance Fee: 3-4% of the loan amount

Standard financing covers up to 70% of the order value (requiring a 30% contribution). However, for established clients with a proven track record and reliable off-takers, we can consider 100% financing.

Arrangement fees are non-refundable as they cover the administrative and due diligence costs associated with processing your application.

Yes, you should still apply. Every business case is unique. If project margins are strong or the contract is of high value, we can discuss alternative structures or partnerships to help you execute.

Your security and trust are paramount. If you have deposited your 30% contribution but your application is not approved, your funds will be refunded in full immediately.

LPO financing is about liquidity and growth. Instead of tying up your working capital for 60 to 90 days, you use our funds to deliver. This preserves your cash for day-to-day operations and allows you to take on multiple orders simultaneously.