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Local Purchase Orders Finance
Fund supply orders, never run out of stock and meet your customers’ orders on time with this loan facility.
Loan Information
Fund supply orders, never run out of stock and meet your customers’ orders on time with this loan facility.
Meet all your customers’ orders in time and never run out of stock with the Local Purchase Order Finance. This loan facility is designed to provide short term financing to small and medium scale retail customers with annual turnover of N500 million and below facility to carry out supply orders.
- LPO finance is subject to a maximum tenor of 90 days with the option of 30 days renewal after the expiry of the facility.
- Interest rate: 34% p.a
- Loan Amount: N100m
- Management Fee: 1% (one off)
This is to assist contractors finance POs raised for the supply of finished goods/services.
- Contract Papers issued by the company awarding the contract.
- Bill of Quantity for the contract to be executed.
- Evidence of previous similar contract(s) executed by Contractor.
- Evidence of relevant government agency approval for contract.
- Any other documents that may be required by the bank.
SMEs with annual turnover up to N3billion.
To Apply for a Contract Finance ,
- Download the Retail Loan Application Form
- Complete the form and submit to the Retail Team at the nearest FirstBank branch
Financing shall be granted against valid and verifiable Local Purchase Orders issued by approved counterparties. Facility proceeds shall be utilized solely for execution of the underlying supply contract. Disbursement may be made directly to suppliers where applicable. Tenor shall align with the contract payment cycle and shall not exceed the approved duration. The customer shall domiciliate proceeds from the LPO in an account with the Bank. Any variation, cancellation, dispute, or non-performance of the contract shall be promptly reported to the Bank.
FAQs
No, it has to be from an approved Principal of FirstBank.
Yes, domiciliation of business proceeds to the bank.
