Purchase order financing
- Who the financier looks to
- You
For suppliers
You have delivered. Get paid now, not in ninety days.
The goods are delivered and the invoice is approved. Then you wait (30, 60, sometimes 90 days) for money you have already earned, while payroll and your next order will not wait with you.
What is an anchor?
Your anchor
The large company you sell to and wait to be paid by. That company is your anchor.
It confirms your invoice
Your anchor runs a program on Mtaji and confirms each invoice you send it.
A bank pays you early
A bank in the program pays you on that confirmed invoice, before the due date.
How it works
Who owes the money: Under Reverse factoring, your anchor carries the obligation and settles with the financier. You are not borrowing against your own balance sheet. Under Purchase order financing and Invoice discounting, you carry the obligation, the financing is with full recourse: if your anchor does not pay, or you do not deliver, you must repay. What the arrangement is in your program is set out in your financier’s documentation.
Step 1 of 5Supplier: You deliver the goods or services to your anchor.
- Goods
- A document
- Money
Read the steps
- Supplier: You deliver the goods or services to your anchor.
- Supplier: You issue the invoice to your anchor.
- Anchor: Your anchor approves the invoice on the platform.
- Financier: The financier pays you early, less the cost shown to you before you accept.
- Anchor: On the due date your anchor pays the financier.
Three steps
You have delivered
Your anchor approves
A financier pays you early
The ways to be paid early
Invoice discounting
- Who the financier looks to
- You
Reverse factoring
- Who the financier looks to
- Your anchor
What it costs
A discount on the invoice value, which you see in full before you accept, on each invoice you choose. You can always decline and wait for the full amount.
Before every trade you see the product, the amount payable to you, every deduction: financier discount, platform fee, VAT, and the effective annualized cost.
Questions
Is this a loan?
It depends on the product, and your program names which one you are in before you trade. Under Reverse factoring, your anchor carries the obligation and settles with the financier. You are not borrowing against your own balance sheet. Under Purchase order financing and Invoice discounting, you carry the obligation, the financing is with full recourse: if your anchor does not pay, or you do not deliver, you must repay. What the arrangement is in your program is set out in your financier’s documentation. Ask us and we will point you at the clause in your financier’s agreement rather than summarizing it.
Will it affect my CRB listing?
That depends on how your financier documents the program, and it is a question with a specific answer rather than a general one. Ask us before you draw, and we will tell you what your financier’s agreement says about bureau reporting for your program.
Do I have to use it?
No. It is optional per invoice. Using it once does not commit you to using it again.
Next: tell us who you trade with
Invited by your anchor? Open it to join.
Not sure where you stand? The free readiness check.
Also buy stock from an anchor? Finance the stock you buy.