Purchase Order Finance – an innovation in working capital
DBT Capital has devised a completely new form of supply chain finance. Without providing security or personal guarantees, suppliers can obtain low cost flexible working capital when it’s needed most: when a purchase order is issued. This is available to suppliers of HM Government, Devolved Government, Local Authorities or Blue Chip organisations.
Purchase Order Finance enables suppliers to tender for procurement contracts without the need to raise working capital to finance the costs of production or delivery of services.
Strengthening supply chains
The buyer’s costs and risks will be reduced because the availability of working capital improves the supplier’s ability to deliver goods and services. These benefits are greatest for integrated supply chains where the cost to the buyer of non-delivery can be a significant multiple of the actual contract value.
How it works
We make up to 50% of the purchase order value available as working capital to suppliers at the time that the purchase order is issued.