Local Purchase Order / Supply Contract Financing

The Local Purchase Order (LPO) / Supply Contract Financing facility provides credit support to suppliers and contractors engaged in delivering visible items or products specified in contract agreements. It ensures businesses can fulfill supply obligations smoothly while maintaining financial stability.

Description

This product offers financing for Local Purchase Orders or contracts involving the supply or delivery of goods, backed by clear specifications in the contract documents.

  • Suppliers of bank‑approved investment grade names

  • International NGOs

  • Revenue‑generating parastatals

  • Mining companies

  • Blue‑chip companies

  • Banks

  • Multinational companies

  • Embassies / Consulates

  • MDAs (Donor‑funded)

Maximum repayment period: 120 days

Security / Collateral

  • Domiciliation and assignment of contract proceeds

  • Tripartite agreement

Repayment must be made in full on or before the expiry date, from proceeds of the Local Purchase Order / supply order

Applications will be screened using the following criteria before bank review:

  • Obligor must not have a history of returned cheques

  • Obligor must not engage in cheque cross‑firing or kite‑flying

  • Obligor must maintain a good reputation

  • Obligor must not have non‑performing facilities in CMB