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First Bank of Nigeria Local Purchase Orders Finance
Local Purchase Orders Finance
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Meet all your customers’ orders in time and never run out of stock with the Local Purchase Order Finance. This loan facility is designed to provide short term financing to small and medium scale retail customers with annual turnover of N500 million and below facility to carry out supply orders.
More Information
Features
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- LPO finance is subject to a maximum tenor of 90 days with the option of 60 days renewal after the expiry of the facility.
- Loan Amount does not exceed 70% of cost of supply.
- Irrevocable Tripartite domiciliation of agreement in respect of Contract proceeds executed by beneficiary company, FirstBank and the employer company.
- The employing company must be on the FirstBank list of Principals.
Benefits
- Gives customers ability to carry out supply orders within a given time frame.
- Gives customers access to working capital.
- Supports business growth and expansion.
- Contribute to nations GDP.
Accompanying Documents
- Customer’s application letter.
- Letter from Employer confirming the Invoice and stating details / time of payment.
- Valid means of identification (National ID, International passport or Drver’s License) of prime mover or 2 of the company directors for limited liability companies.
- Six (6) months statement of account.
- LPO supply paper.
- Letter of domiciliation of contract payment from Employer Company.
Who Can Apply
- SMEs with annual turnover up to N3billion.
How to Apply
To apply for a Local Purchase Order Finance,
- Download the Retail Loan Application Form
- Complete the form and with the accompanying documents, submit at the nearest FirstBank branch
FAQs
Frequently Asked Questions
1) Can the supply order come from any company?
No, it has to be from an approved Principal of FirstBank.
2) Is any collateral required?
Yes, domiciliation of business proceeds to the bank.
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