Through a referral arrangement, FNB has expanded the options available to business clients who have secured confirmed purchase orders or contracts but need money upfront to deliver on them.<\/p>\n
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Many businesses face a familiar challenge: they receive a confirmed purchase order or contract, but need cash upfront to buy materials, pay suppliers, or deliver goods or services before they get paid.<\/p>\n
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This cash\u2011flow gap can prevent otherwise capable businesses from taking on opportunities and growing. To help address this, FNB can now refer eligible business clients to Sourcefin for consideration for purchase order (PO) financing.<\/p>\n
Sourcefin reports that it has\u00a0deployed R3billion<\/strong>[i]\u00a0to more than 1,000 SMEs<\/strong>\u00a0across South Africa in just five years of operation. With long-term business growth top of mind, Sourcefin also reports that it connects funded businesses to\u00a0a network of\u00a0more than 2,000 pre-vetted suppliers worldwide and partners with SMEs along their business journey to\u00a0<\/strong>support delivery outcomes.<\/p>\n In terms of the referral arrangement,\u00a0FNB can refer SMEs seeking PO or tender-based finance directly to Sourcefin<\/strong>, so that qualifying entrepreneurs who have secured work but need the upfront capital to deliver can apply to Sourcefin for funding.<\/p>\n In simple terms, this allows a business to be considered for funding based on a confirmed purchase order or contract, so it can complete delivery before receiving payment from client.<\/p>\n \n As a complementary solution to traditional business lending, this type of funding is linked to work that has already been secured.<\/p>\n \n What this looks like in practice is simple: clients can speak to their relationship manager or business banker, who can facilitate a referral to Sourcefin.\u00a0SMEs referred to Sourcefin through the referral arrangement with FNB may be considered by Sourcefin for funding based on Sourcefin\u2019s own assessment.<\/p>\n \n Upon receiving the referral, Sourcefin validates the purchase order, vets the parties involved and independently assesses the application. Sourcefin also performs its own fraud checks as part of its assessment.<\/p>\n \n Sourcefin specialises in funding procurement-linked transactions and reports a strong track record on funded deals to date. Sourcefin works with SMEs to support them through delivery.<\/p>\n \n Clients can initiate a referral through their FNB relationship manager or business banker. All assessments and decisions to offer purchase order financing are made solely by Sourcefin, in line with its own credit and risk processes. FNB does not assess, approve, or fund applications and a referral does not guarantee that funding will be offered by Sourcefin.<\/p>\n \n Gavin Tarr, Head of Working Capital Solutions, FNB Commercial Structured Finance Solutions, says, \u201cMany businesses are doing the right things \u2014 securing customers and confirmed orders, but struggle with cash flow at the point they need to deliver. By enabling access to purchase order financing through this referral arrangement, we are helping SMEs unlock cash flow when it is most needed.\u201d<\/p>\n \n \u201cSourcefin exists to enable SMEs,\u201d adds Joshua Kadish, CEO and co-founder of Sourcefin. \u201cThese businesses often have real work in hand but get stuck at the point of execution. Working with FNB brings trusted banking reach together with open-minded funding, so more entrepreneurs can convert confirmed demand into delivery and sustainable business growth.\u201d<\/p>\n \n