Purchase Order Finance
Bellatrix SME Finance provides funding to MSMEs and Startups with Purchase Orders or Supply Contracts to supply goods or complete a project. MSMEs and Startups can use the facility to buy materials, to pay for transport and labor.
Purchase Order Transaction Model
Our Purchase Order transaction process is summarized below:
Facility Conditions
- Loan repayment period of 60 days (2 months).
- Loan facility can cover up to 100% of project costs.
- Approved funds will be paid to suppliers based on submitted quotations.
- Cession Agreement (Project proceeds to be paid into Bellatrix’s bank account).
Application Process
- MSME applies for Purchase Order Financing from Bellatrix SME Finance.
- MSME , Bellatrix and the Buyer/Purchase Order Issuer(off-taker) to sign a cession agreement cession for the project payments to be made into Bellatrix’s bank account.
- MSME signs a contract with Bellatrix to acknowledge receipt of loan facility.
- Bellatrix pays the MSME ’s suppliers to deliver goods or material required for the project.
- Purchase Order Issuer pays progress payments/project proceeds to Bellatrix Capital upon project completion.
- Bellatrix deducts principal amount and interest and pays net amount to MSME.