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PROCUREMENT FINANCE

Procurement Finance involves financing of businesses that have obtained a contract or order either from the private or public sector, providing a working capital facility for growing manufacturing concerns by means of discounting invoices to their customers and to provide bridging finance and performance guarantees (guarantees linked to bridging finance only) to small contractors in the building and allied trades based on a secured contract.

Products offered under this fund include:

  • Bridging Finance
    • This term loan serves the purpose of financing businesses that have secured contracts. The maximum term for this product is 36 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Working Capital Finance Term Loan
    • This term loan serves the purpose of financing expenditure in order to fulfil contracts. The maximum term for this product is 36 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Working Capital Finance Revolving Loan
    • This loan serves the purpose of financing contracts that require funds to be drawn at various stages of the project life cycle with a fixed cap on the facility. This option provided the client with the advantage of not having to reapply for a new facility each time funds are needed. The maximum term for this product is 12 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Order Finance
    • The purpose of order discounting is to provide a working capital facility to emerging manufacturing concerns by means of an upfront advance of funds prior to commencement of a contract. The maximum term for this product is 12 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Guarantees
    • A guarantee will be issued in respect of companies securing contracts that require performance guarantees. The maximum term for this product is 12 Months but it can be adjusted to suit the cash flows of the business been financed.
  • Invoice Discounting Finance
    • The purpose of invoice discounting it to provide a working capital facility for growing manufacturing concerns by means of discounting invoices to their customers. The maximum term for this product is 12 Months but it can be adjusted to suit the cash flows of the business been financed.

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Ithala is an Authorised Financial Services and Credit Provider
FSP License No. 17139 NCRCP No. 1559 Reg No. 2001/007427/30
Ithala SOC Limited is a wholly-owned subsidiary of Ithala Development Finance Corporation Limited