Local Purchase Order
LPO or contract financial facility is a means by which a number of organizations make use of third parties in providing some of the items needed in their business and or in a contract agreement document. These third parties or contractors or suppliers regularly require financial assistance to execute such contracts.
However, it is noteworthy that over the years’ experience has shown that most contractors often face challenges in accessing finance from banks which is largely due to lengthy turnaround time for credit coordination.
| FEATURES |
| ¤ LPO finance is subject to a maximum tenor of 90 days with the option of days renewal after the expiring 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, the Memphis MFB and the employer company |
| ¤ The employing company must be on the Memphis MFB list of principal |
| REQUIREMENTS |
| ¤ Customer in formal application letter |
| ¤ Letter from employer confirming the invoice and stating details/time of payment |
| ¤ Valid means of identification, National ID, voters Card, Driver License, International Passport of prime mover or 3 of the company directors for Limited Liability Company. |
| ¤ Six month statement of account or 12 months statement of account for new customer |
| ¤ Copy of purchase order/contract document |
| ¤ Letter of domiciliation of contract payment from employer company |
| ¤ Board resolution ( if a limited company) authorizing the request |