You won the contract. Now it has to be delivered before it is paid.
A signed contract or purchase order is one of the strongest reasons to borrow: there is a named customer and a known amount on the way. The gap is everything you pay out before that money arrives.
Checked 21 September 2026
What the gap is made of
Materials, stock, staff, transport and subcontractors are paid for up front. The client pays after delivery and invoicing, often weeks later. On a large order that gap can be more than the business turns over in a month, which is why winning a contract can strain a business that was comfortable before it.
When government pays
National and provincial departments must pay suppliers within 30 days of receiving an invoice, unless the contract says otherwise (Treasury Regulation 8.2.3). Municipalities must take all reasonable steps to pay within 30 days of receiving an invoice or statement (section 65(2)(e) of the Municipal Finance Management Act). A supplier still unpaid after 30 days should first take it up with the municipality’s accounting officer, then with the provincial treasury if there is no satisfactory answer within 15 days.
Plan the funding for the payment arriving later than that anyway. Government buyers get verified supplier information from the Central Supplier Database, and National Treasury encourages suppliers to register on it.
The funding that fits a contract
Purchase order and trade finance pay your suppliers against the order, and are repaid when the client pays. Once you have delivered and invoiced, invoice finance advances most of the invoice’s value straight away. A short loan suits a smaller order where you know both the cost and the payment date.
- The signed contract or purchase order, with the payment terms.
- Quotes from your suppliers for what the order needs.
- The margin on the job after the cost of funding.
- A record of delivering similar work, if you have one.
Lenders on Frank’s panel for this
These are the panel products the results page puts first when a business says the funding is for a contract or a big order. The contract itself is often the strongest part of the application.
- Trade finance
- If the contract needs inputs to produce, trade finance sits alongside PO finance.
- Invoice finance
- Once the work is delivered, the invoice itself can be financed to unlock cash earlier.
- Term loan
- A short working capital loan works if the order value and timing are modest.
| Lender and product | Min. turnover | Min. trading | Amount | Security | Card sales | Credit record | Documents | Rate |
|---|---|---|---|---|---|---|---|---|
| Geddes Capital Trade Finance Trade finance | R167k a month | 12 months | R500k to R15m | Required | Not needed | Some adverse credit considered | 6 months’ bank statements, financial statements | 2–4% a month |
| Geddes Capital Invoice Factoring Invoice finance | R167k a month | 12 months | R200k to R15m | None | Not needed | Some adverse credit considered | 6 months’ bank statements, financial statements | 1.5–3% a month |
| Geddes Capital Secured Business Loan Term loan | R167k a month | 12 months | R500k to R15m | Required | Not needed | Some adverse credit considered | 6 months’ bank statements, financial statements | From prime + 2% |
| Pollen Finance Unsecured Business Loan Term loan | R83k a month | 12 months | R100k to R6m | None | Not needed | Some adverse credit considered | 6 months’ bank statements | Flat fee |
- Geddes Capital
Trade Finance · Trade finance
- Min. turnover
- R167k a month
- Min. trading
- 12 months
- Amount
- R500k to R15m
- Term
- 6 to 120 months
- Security
- Required
- Card sales
- Not needed
- Credit record
- Some adverse credit considered
- Documents
- 6 months’ bank statements, financial statements
- Rate
- 2–4% a month
- Speed
- 1 week
- Geddes Capital
Invoice Factoring · Invoice finance
- Min. turnover
- R167k a month
- Min. trading
- 12 months
- Amount
- R200k to R15m
- Term
- 12 to 120 months
- Security
- None
- Card sales
- Not needed
- Credit record
- Some adverse credit considered
- Documents
- 6 months’ bank statements, financial statements
- Rate
- 1.5–3% a month
- Speed
- 48 hours
- Geddes Capital
Secured Business Loan · Term loan
- Min. turnover
- R167k a month
- Min. trading
- 12 months
- Amount
- R500k to R15m
- Term
- 6 to 120 months
- Security
- Required
- Card sales
- Not needed
- Credit record
- Some adverse credit considered
- Documents
- 6 months’ bank statements, financial statements
- Rate
- From prime + 2%
- Speed
- 1 week
- Pollen Finance
Unsecured Business Loan · Term loan
- Min. turnover
- R83k a month
- Min. trading
- 12 months
- Amount
- R100k to R6m
- Term
- 6 to 8 months
- Security
- None
- Card sales
- Not needed
- Credit record
- Some adverse credit considered
- Documents
- 6 months’ bank statements
- Rate
- Flat fee
- Speed
- 24 hours
These are each lender’s published minimums, not approvals. Every lender on the panel, side by side
Questions
Yes. Lenders fund government contracts routinely, and a signed contract with a government buyer is a strong basis for an application. Have the contract, supplier quotes and your margin ready.
National and provincial departments must pay within 30 days of receiving the invoice, unless the contract says otherwise (Treasury Regulation 8.2.3). Municipalities must take all reasonable steps to pay within 30 days of receiving the invoice or statement (section 65(2)(e) of the MFMA). Payments can still run late, so plan for it.
Purchase order finance pays your suppliers before you deliver, against the order. Invoice finance advances cash after you have delivered and invoiced, against the invoice. Many contracts use one then the other.
Sources
Related
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