Order Financing provides you with the financing you need to fulfill orders from large and credit worthy clients. The facility can be accessed by Sole Proprietors, SMEs, Corporate Exporters/Importers

Requirements

• Letter of application supported by Original local purchase order from a reputable and credit worthy entity
• Reliable supplier for the products or services
• FDH Bank verifies the credit worthiness of the buying customer in terms of the Bank’s Credit Risk Grading Criteria
• The Bank gives specimen standard finance application letter and Cession of Rights letter to the borrowing customer to write to their buyer and Cession of Rights Forms for the buying customer to execute in favour of FDH Bank.
• Submission of audited and / or management accounts
• Must be account holder

If the credit review is acceptable, the transaction proceeds as follows:

• FDH Bank pays direct to the supplier in advance, local or foreign
• The supplier manufactures or supplies the product according to the buyer’s specification
• The SME instructs their approved transporters to collect the goods
• The buyer receives the product and accepts it.
• SMEs buying customer pays for the order, usually 30 days or so after receipt but not later than 60 days. Payment is made direct to FDH Bank in line with Cession of Proceeds
• FDH Bank deducts all its dues and pays over the balance to the SME

Benefits

• Offers upfront finance facility to procure goods and services to supply to their customer
• Frees up cash for critical business expenses for the buyer of goods /services
• Provides SME with the financing needed to fulfill orders from large and credit worthy clients and offers an opportunity to grow business and capital
• The collateral that OFF requires is the Cession of Proceeds i.e. tripartite agreement for purpose of ensuring that financing is done. This may be beefed with additional collateral based on circumstances.
• Financing caters for insurance, freight charges and custom duties