• INTERNET BANKING
  • FORMS AND GUIDES
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Local Purchase Order Finance

Overview

Short-term transaction-based loan used to improve customer’s business working capital and cash flow prior for the fulfillment of a local purchase order. POF allows a business to borrow funds against a purchase order or sales contract from its local buyer(s) by borrowing against a percentage of the value of the purchase order.

  •  Loan amount of up to 70% of supplier’s tax invoice value.
  •  Maximum loan is TZS 5 billion or USD equivalent.
  •  Loans be issued on TZS or USD (depending on the repayment sources).
  •  The loan tenor is 30 to 180 days (Depending on the terms of LPO or Sales Contracts).
  •  Competitive interest rates and affordable terms.

  •  Customer with good track records in Account conduct and credit history.
  •  Previous successfully executed purchase orders or contracts from reputable Buyer/Client.
  •  Acceptable LPO/Contracts are those from reputable organizations with history of settling their obligations within acceptable timeline.
  •  LPO/contracts with payment terms below 180 days.
  •  Applicants must open or have a CRDB Business Account –CRDB Biashara Account.

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