Purchase Order Funding

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What is Purchase Order Funding?

Your business finally landed that dream order, but doesn’t have the operating capital in hand to make it happen? Tata Capital Purchase Order Funding solutions provide upfront funding to your suppliers secured against a confirmed Purchase Order. We assist you with the financing of the transaction up until the time an invoice is raised.

Our Purchase Order Funding solutions help SMEs and startup companies who may be having a difficult time filling large orders. Purchase order funding for small business is a perfect solution for resolving cash flow problems and getting your outstanding orders filled. Our financing solutions will help you procure the necessary raw materials, supplies or manpower to deliver an outstanding product or service to your clients whilst you continue to grow your customer base.

Purchase Order Funding is available from Tata Capital for vendors dealing with selected Corporates only which are approved by Tata Capital.

Penal Charges

Default in payment of interest and/or principal amounts, Below charges on the defaulted amount

Overdue Days	Penal Charges
1-30 days	4% p.a
31-60 days	8% p.a.
61- 90 days	12% p.a.
Greater than 90 days	24% p.a

(ii) Dishonour Charges: Rs. 670/- (Rupees Six Hundred and Seventy Rupees only) for every Cheque/ Payment Instrument/ ECS Dishonour.

(iii) Non-creation/perfection of security: @ 2% on the outstanding principal amount will be charged for the period of delay in respect of delayed/non-submission of security/collateral related documents and non-perfection of security.

*Charges to be paid along with applicable Tax

Schedule of Other Charges

Description	Periodicity	Penalty Amount
Delayed/non submission of stock statement	To be submitted Quarterly by 10th of every Calendar Quarter.	Additional one time charge of Rs 20,000/- per Quarter
Delayed First Insurance cover note and non renewal of Insurance on due date	First Insurance:- within 30 days from disbursement date. Renewal : as and when due	Additional one time charge of Rs 20,000/- per financial year
Non adherence of financial covenants’ of sanction letter	At the time of Review /Renew of account	Additional one time charge of Rs 20,000/- per financial year
Documentation charges	Rs 5,000/-
Stock Audit charges	Rs 5,000/-
ROC and CERSAI filling	Rs 5,000/-
Valuation charges	As per actuals
TSR fees / Title search fees	As per actuals
Security trust fees	As per actuals

Charges to be paid along with applicable Tax

Purchase Order Funding Features & Advantages

Here’s why you should choose Tata Capital to get a working capital term loan for your business:

Encourages vendors to take up new business opportunities without waiting for advances

Facilitate additional working capital funds thus improves cash flow / liquidity to fulfill Purchase Order from corporate

Competitive Pricing – Leveraging on Corporate ’s credit rating

Simple standard documentation process

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Purchase Order Funding

What is Purchase Order Funding?

Penal Charges

Schedule of Other Charges

Purchase Order Funding Features & Advantages

Other Working Capital Solutions

Channel Finance

Invoice Discounting

Working Capital Demand Loan