By Fund The People Editorial Team. Reviewed 8 October 2026.
Purchase order funding costs in South Africa should be compared as the full written charge for your transaction. Ask what supplier costs are covered, what you contribute, when charges are recovered and what happens if buyer payment moves. Fund The People confirms the proposed charges through assessment; this guide gives a practical method for comparing the offer.
What determines the cost of our Purchase Order Funding Solutions?
Assess the order, supplier payments, delivery requirements and settlement assumptions together. The Purchase Order Funding Solutions service page explains the core product. This guide concentrates on pricing questions and the contribution remaining after agreed costs.
- Amount and scope: separate the awarded deal value from the eligible supplier amount and costs your company must meet.
- Duration: show procurement, delivery, acceptance and expected buyer payment dates. Ask whether any charge depends on elapsed time.
- Buyer and documents: provide a verifiable order and a clear acceptance and payment path.
- Supplier arrangements: current quotations, stock, payment terms and transport requirements determine the actual cash need.
- Changes: ask how a revised order, replacement supplier or later payment affects the written offer.
Fund The People provides our own in-house Purchase Order Funding Solutions, Tender Funding Solutions and Invoice Discounting Solutions. Our minimum deal size is R250,000 and our funding range is R250,000–R8,000,000+. We provide funding approval within 48 hours for complete qualifying applications. The assessed amount and cost are established in the proposed arrangement.
A worked example of the contribution after charges
Illustration only: these figures are hypothetical and do not state Fund The People pricing, an advance commitment or a quote. Use all figures on the same VAT basis.
| Budget line | Amount |
|---|---|
| Authorised order revenue | R600,000 |
| Supplier goods | R420,000 |
| Other direct delivery costs | R35,000 |
| Hypothetical funding charge | R18,000 |
| Contribution before overhead and tax | R127,000 |
The calculation is R600,000 − R420,000 − R35,000 − R18,000 = R127,000. It does not establish net profit. If the approved arrangement covers goods alone, your business still needs a source for the R35,000 delivery costs. Recalculate using the actual written charge and every required input.
If goods rise by R15,000 and every other illustrative amount stays unchanged, the contribution becomes R112,000. That is a supplier-price change, not an assumed funding surcharge. Review quotation expiry and price validity before relying on a budget.
Compare quotes using the same cost checklist
| Ask for | Decision it supports |
|---|---|
| Approved amount and suppliers | Which delivery inputs can be paid? |
| Excluded expenses and own contribution | What must your business fund separately? |
| Every charge in rand and its calculation base | What is the complete transaction cost? |
| Deduction timing and settlement sequence | When is each amount recovered? |
| Later-payment calculation using proposed terms | How does a changed date affect the contribution? |
| Supplier support and responsibility | Which sourcing and fulfilment services are included? |
Fund The People also provides end-to-end supply chain support with 1,000+ vetted, accredited suppliers, including sourcing, cost negotiation, logistics and order fulfilment coordination. Discuss the support required for your order. Confirm the agreed services and their costs in writing.
Choosing a provider as well as reviewing a quote? Our purchase order funding guide to companies, eligibility and applying connects the cost calculation to buyer fit, supplier payments and the evidence to prepare.
Prepare the cost enquiry around your actual awarded work
Submit a current awarded order and supplier quotations with the requested application records. Use our document checklist and approval and supplier-payment timeline. Match amounts, specifications and dates, then show excluded costs and your contribution. A signed agreement governs payment and settlement.
For awarded tender work, explore our Tender Funding Solutions. For eligible accepted invoices awaiting payment, explore our Invoice Discounting Solutions. Apply to Fund The People with the file for the stage you have reached.
Frequently asked questions about purchase order funding costs
How much do Purchase Order Funding Solutions cost in South Africa?
The useful figure is the total charge in rand for the transaction your business needs to deliver. Request a written proposal that separates the approved supplier payments, any contribution from your business, each charge and the expected settlement amount. Identify the calculation base and duration where a percentage appears. A percentage of the awarded order is different from the same percentage of the supplier amount. A monthly calculation also differs from a single charge for the complete transaction. Fund The People confirms the proposed terms through the assessment of your qualifying order; this article does not state a standard company rate. Compare offers using the same order, current quotations and expected buyer payment date. Ask for a second calculation if that date moves, using the provider’s actual proposed terms. Then check the resulting contribution against your overhead and delivery commitments. A complete written schedule gives you a decision you can defend, rather than a headline percentage whose deductions remain unclear.
Is the purchase order value the amount that will be funded?
The purchase order value is what the buyer has agreed to purchase under the operative order. The assessed funding requirement is the cash needed for eligible inputs before the buyer pays. These amounts can differ substantially. For example, an illustrative R600,000 order might require R420,000 of goods and R35,000 of transport. An arrangement covering the goods alone would leave the transport requirement for your business to meet separately. The example does not promise that these costs will be approved or that a particular proportion will be advanced. Fund The People’s published minimum deal size is R250,000, with a funding range of R250,000–R8,000,000+. Ask the team how the deal value and proposed amount apply to your actual order. Keep the awarded value, supplier requirement, approved amount, excluded expenses and own contribution on separate lines. This prevents a large order from creating an inaccurate expectation about cash available for delivery. Compare the written scope with each supplier invoice before committing to payment.
How should I calculate the margin after funding charges?
Start with the revenue for the authorised order and subtract the direct costs required to deliver it. Include goods, transport, installation, labour or other inputs relevant to that scope. Subtract the funding charge and any other agreed transaction costs once you have a written proposal. Use figures on a consistent VAT basis and obtain accounting advice for the treatment applicable to your business. The worked example in this guide leaves R127,000 from R600,000 revenue after R420,000 goods, R35,000 delivery costs and a hypothetical R18,000 charge. That remainder is a contribution before overhead and tax, rather than net profit. Your business may still need to cover salaries, premises or other operating costs. Recalculate the contribution if the buyer changes quantities or a quotation expires. Also show any cost your business must pay before the funded supplier payments occur. A positive contribution on paper does not eliminate a cash gap at a particular stage of delivery. Use both calculations when reviewing the offer.
Can supplier sourcing and logistics support change the deal cost?
They can change the delivery budget because supplier prices, transport routes, lead times and order specifications affect the inputs needed to fulfil the contract. Fund The People provides end-to-end supply chain support with a network of 1,000+ vetted, accredited suppliers. Discuss sourcing, cost negotiation, logistics and order fulfilment coordination alongside your funding enquiry. Ask which support is included in the proposed arrangement and which services require separate payments. A negotiated goods price can improve the contribution, while a different supplier may introduce collection costs or a longer delivery schedule. Compare the full delivered cost for the same specification before choosing. Any substitution must follow the buyer’s required authorisation and the funding team’s verification process. Keep the current quotation and approved supplier details in your file. Supplier support does not establish a universal discount or remove every execution risk. Its practical value is a clearer route to compliant goods, defined responsibilities and a budget based on current delivery conditions rather than an expired quotation.
Does a delayed buyer payment automatically create another charge?
The signed agreement determines how a delayed payment affects the cost and the responsibilities of each party. Ask the provider to identify any time-based calculation, extension charge or notice requirement before accepting the offer. A fixed initial quotation does not tell you whether every later scenario carries the same cost. Conversely, a delay does not establish that an additional charge exists if the agreement provides no such charge. Request a dated example showing expected settlement and a later settlement date relevant to your order. Separate late payment from an unresolved acceptance dispute, missing invoice information or retention under the buyer’s contract. Keep delivery records, acceptance evidence, invoice submission confirmation and correspondence together so the payment position can be understood. Fund The People’s team can explain the proposed settlement terms for your transaction. Use those terms in your cash-flow forecast and update it when the buyer gives new information. This allows you to evaluate the effect on contribution and operating cash without inventing an assumed market penalty.
What belongs in a complete purchase order funding quote?
A useful quote identifies the applicant, buyer, operative order and scope being assessed. It states the proposed amount, authorised suppliers, payment destinations and costs covered. It also separates all charges, their calculation bases, when they are recovered and any relevant VAT treatment. Ask for the release conditions, the expected settlement process and any responsibilities that continue if delivery or buyer payment changes. Record exclusions and your own contribution so every required cost has a funding source. Where the order has several stages, confirm which stage the quote concerns instead of assuming it covers the full framework contract. Check the quote against the current supplier prices and the buyer’s acceptance requirements. If an amount or date changes, request the updated proposal and retain the earlier version for comparison. The purpose is a shared understanding of the same transaction across your business, supplier and assessment team. A detailed written quote supports a practical decision even where the product uses no standard public price schedule.
Are a monthly percentage and a fixed deal charge comparable?
They become comparable when converted into total rand amounts for the same transaction and settlement assumptions. First identify the base of any percentage: the supplier payment, approved amount, invoice or order value. Then identify whether the calculation applies once, by month, by day or on another agreed basis. Ask how partial periods and extensions are treated where relevant. A hypothetical R18,000 single charge cannot be compared directly with an advertised monthly percentage without knowing the funded amount and duration. The R18,000 used in this article is an illustration, not Fund The People pricing. Ask each provider to calculate its own proposal for your expected buyer payment date and one realistic later date. Include every other agreed deduction before comparing the remaining contribution. Avoid assuming that a product label establishes the calculation method. The written offer supplies the terms needed to compare cost, available supplier funding and obligations together. This is more informative than selecting whichever percentage appears smaller in isolation.
How quickly can Fund The People approve a qualifying application?
Fund The People provides funding approval within 48 hours for complete qualifying applications. Prepare the operative awarded order, current supplier quotations, company information and the supporting records requested for your transaction. Ask the assessment team to confirm any outstanding information rather than treating an initial contact enquiry as a complete application. Approval, agreement completion, supplier payment and physical delivery are separate milestones. Your approved arrangement confirms the release conditions and supplier-payment schedule. A quotation that expires during preparation or an order with inconsistent buyer details should be clarified promptly because the assessment needs current, matching information. Use our dedicated approval timeline guide to map the steps backwards from the buyer’s required delivery date. The published approval wording does not promise that stock will be manufactured, transported or accepted in the same 48-hour period. Record the next action and responsible contact for each milestone so speed in assessment supports an achievable delivery sequence and a cost calculation based on the actual transaction.
Which documents help the team assess a reliable cost proposal?
Start with the awarded purchase order or relevant contract, current supplier quotations and company records. For the published government and municipal route, prepare the relevant CSD information and follow Fund The People’s document guide for the requested supporting records. Check that the buyer, applicant, order reference, quantities and specification match across the file. Include delivery-related costs that appear outside the goods quotation and explain the required payment dates. A supplier quotation should show its validity, stock or lead-time position and payment conditions. Flag any change already known instead of presenting an outdated price as current. Explain the buyer’s acceptance and invoicing steps so the expected settlement date can be assessed sensibly. A concise cost schedule can connect these documents without creating additional paperwork that the team has not requested. Keep commercially sensitive information in the private application channel. Reliable inputs help the proposal describe the real order and reduce the chance that omitted transport, installation or expired prices distort the apparent margin.
Which funding service should I use at each stage of the contract?
Choose the service around the work and payment position you have today. Our Purchase Order Funding Solutions address eligible supplier costs attached to a confirmed order before delivery. Our Tender Funding Solutions support qualifying awarded tender work and its fulfilment requirements. Where an award leads to an issued purchase order, the routes can overlap and the team can confirm the appropriate assessment. Our Invoice Discounting Solutions concern eligible unpaid invoices after completed and accepted work. A tender notice or bid belongs to an earlier discovery and preparation stage; the Tender Portal helps businesses find opportunities and register suppliers. It complements the three core in-house funding services. Keep an award, an issued order and an unpaid accepted invoice distinguishable when submitting your enquiry. This makes the costs and required evidence easier to assess. If you already have a funding arrangement attached to the order or invoice, disclose it so the team can check the payment rights and responsibilities. Use the relevant service page for the next step in your actual transaction.
Request an assessment and written cost proposal from Fund The People.