For a small business fulfilling its first government order, a useful funding request starts with the cost of that order. List the supplier inputs, when they must be paid and what your company can contribute. Our Purchase Order Funding Solutions address the qualifying transaction’s supplier-payment gap.
Fund The People’s funding model is transaction-specific. We fund qualifying transactions directly through our own in-house Purchase Order Funding Solutions, Tender Funding Solutions and Invoice Discounting Solutions. Our application is for an awarded order, awarded tender or eligible unpaid invoice; it is not an application for traditional general-purpose business funding or unrestricted startup capital.
Separate the order budget from the startup budget
An awarded order may create a specific requirement for materials, goods or other supplier inputs. Your wider business may also need premises, equipment, marketing or additional staff for future trading. Keep those wider plans in a separate budget so the enquiry clearly shows the work already awarded.
Include a cost in the transaction schedule when you can explain its connection to the buyer’s requirement. Do not assume every expense in your startup budget can be paid through the approved arrangement. Our team confirms which costs and payments form part of the proposed Funding Solutions terms.
Start with current supplier quotations
Use the awarded specification to check items, quantities and prices. A quotation should show the supplier, validity period and relevant payment and delivery conditions. Resolve substitutions with the buyer and supplier before treating them as confirmed.
Check whether quoted prices include VAT, transport, installation or other required inputs. A low goods price can conceal an incomplete delivery budget. If several suppliers are involved, show each quotation and which part of the order it covers.
Map costs to payment dates
Prepare a simple schedule showing the item, supplier, quotation reference, amount and expected payment date. Note any deposit, balance before dispatch or delivery milestone. This exposes the point where cash must leave the business before the buyer’s payment arrives.
Compare that schedule with stock availability and lead times. A supplier’s payment date and the government buyer’s delivery date are different events. Confirm the approved supplier-payment arrangement with our team instead of assuming approval means the supplier has already been paid.
Show the funding gap without double counting
Keep the awarded order value, delivery cost and requested amount as separate figures. The order value is the revenue attached to the award; it is not automatically the amount needed to pay suppliers. Record any contribution your business intends to make and when it will be available.
Subtract only money genuinely available for the relevant costs. Do not count an expected customer payment as cash already received or subtract the same contribution twice. Explain any deposit or partial payment supported by the transaction records.
Our current Purchase Order Funding Solutions route requires an awarded government or municipal order with a deal value of at least R250,000. That minimum refers to the deal value. Our team assesses the requested amount against the transaction and proposed terms.
Calculate the amount remaining after costs
Review the order value alongside supplier inputs, delivery costs and the proposed Funding Solutions charges. Check arithmetic and the treatment of taxes in your own costing. Keep assumptions visible and update the schedule when quotations or the awarded scope change.
There is no useful substitute for understanding the complete transaction. A percentage copied from another article cannot confirm whether your order is workable. Our team reviews the commercial position and confirms the proposed charges and terms for the actual application.
Prepare a first-order cost summary
Keep the valid order, current quotations and cost schedule together. Use our document checklist for the required application records, and our supplier readiness guide for availability and delivery checks.
Check startup eligibility before submitting your awarded-order application. Present the actual supplier requirement and deadline; the purpose is a defined transaction, rather than a general request to grow the business.
Why Did 3000+ SMMEs Choose Fund The People?
We have supported 3,000+ South African SMMEs since January 2025. Our deal range is R250,000–R8 million and above, with funding approval within 48 hours for complete qualifying applications. Approval and the agreed supplier-payment schedule are separate steps.
Frequently asked questions
Can I use this application to fund all my startup expenses?
This application is for our transaction-specific Purchase Order Funding Solutions. Present the costs connected to a qualifying awarded order. Keep wider startup expenses in a separate budget, and ask our team which supplier costs and payments are included in the proposed arrangement.
Is the order value the amount I should request?
The awarded order value and requested funding amount are different figures. Show the actual supplier and delivery costs, your available contribution and the payment dates. The current starting minimum of R250,000 refers to the awarded deal value; our team assesses the requested amount separately.
Should I include delivery costs in my budget?
Record transport and any other costs required to complete the awarded specification, including whether they are already included in the supplier quotation. Present the complete cost schedule and ask our team which costs and payments are covered by the proposed terms.
Does approval within 48 hours mean the supplier is paid within 48 hours?
Funding approval within 48 hours applies to complete qualifying applications. It does not describe the supplier-payment schedule. Confirm the approved terms, payment conditions and agreed supplier-payment timing with our team.
Is this a traditional business funding application?
Fund The People funds qualifying transactions directly through our own in-house Funding Solutions. The application addresses an awarded order, awarded tender or eligible unpaid invoice; it is not a general-purpose business loan or unrestricted startup-capital application.