LPO Financing Facility
Short-term working-capital finance for Ugandan SMEs that have won verified purchase orders but lack the up-front capital to fulfil them.
Many capable Ugandan suppliers win contracts with government agencies, NGOs, and large corporates - then struggle to fulfil them simply because they lack the working capital to buy stock or materials up front. This facility exists to close that gap.
How LPO Financing Works
- An SME wins a verified Local Purchase Order (LPO) from a creditworthy buyer.
- The facility advances working capital against that specific, assigned purchase order.
- The supplier fulfils the contract and delivers to the buyer.
- On payment, the facility is repaid directly from the proceeds, typically within 30-90 days.
Risk Controls
Every advance is underwritten transaction-by-transaction against a verified purchase order and the buyer's payment history - not against the SME's general balance sheet. Short tenors mean the portfolio turns over multiple times a year.
Why the Club Is Investing
Short duration and order-by-order collateral make this a useful complement to the club's longer-horizon holdings, giving members exposure to Uganda's growing SME supply chain sector without taking on long-term illiquidity.