What is LPO financing?
A Local Purchase Order (LPO) is a formal commitment from a buyer to purchase goods or services from you. Winning one is good news, it means the demand is real and the sale is essentially agreed. The problem is that fulfilling it costs money up front: you need to buy stock, pay suppliers, cover logistics and labour, often long before your buyer pays you.
LPO financing bridges that gap. It provides the working capital to execute an order you've already won, so a confirmed deal doesn't slip away simply because the cash isn't in your account yet. With Reelaay, that funding comes from licensed banks and finance partners and is arranged around the order itself.
How LPO financing works
The process is designed to be fast and transparent, with verification before any money moves.
- 1
Submit your confirmed order
Share the purchase order and your buyer's details. This is the deal you've already won and are ready to execute.
- 2
Verification
Reelaay verifies both the order and the buyer before any capital is committed, so everyone is confident the deal is real.
- 3
Funding is deployed
Once verified, funding from a licensed partner is arranged around the order and released so you can fulfil it, usually within 24 to 48 hours.
- 4
Execute and get paid
You deliver to your buyer. Payment goes into a dedicated account operated by a licensed partner, fees settle transparently, and your earnings land automatically.
Have a confirmed LPO right now?
If you've already won the order, Reelaay can help you verify, fund and execute it, with every fee shown before you commit.
What does LPO financing cost?
Pricing should never be a surprise. With Reelaay you pay two clear fees: an execution fee, a percentage of your order value that covers verification and managing the transaction end-to-end, and a financing fee, based on the capital deployed and how long it's outstanding. The financing fee is shared with the licensed partner providing the funds.
Both figures are shown to you in naira before you accept anything. There are no application fees, no monthly charges, and nothing to pay if a deal isn't approved. See how you're charged.
LPO financing without collateral
Traditional bank facilities often ask for property or fixed assets as security, which shuts out capable suppliers who simply haven't built up that base yet. LPO financing works differently: the confirmed order is the foundation of the funding, not your house or your equipment.
This is why it suits growing businesses. If you have a real buyer and a genuine order, you can access the capital to deliver it, and grow on the strength of the work you're already winning.
Who LPO financing is for
LPO financing is built for established suppliers executing high-value B2B orders, whether your buyer is a corporate, a large distributor, or a government institution. It is not a personal loan or a facility for speculative deals. It works best when there is a real, confirmed order and a credible buyer behind it.
LPO financing FAQ
- What is LPO financing?
- LPO (Local Purchase Order) financing is funding that lets a supplier fulfil a confirmed purchase order they've already won, when they don't have the working capital to execute it themselves. With Reelaay, the funding comes from licensed partners and is arranged around the order, not against your assets.
- Is LPO financing a loan?
- Not in the traditional sense. It's arranged around a specific confirmed order rather than your personal or business assets. Reelaay is a technology platform; the capital is provided by licensed banks and finance partners.
- Do I need collateral for LPO financing?
- No property or fixed-asset collateral. The confirmed order itself is the basis for the funding.
- How much does LPO financing cost?
- With Reelaay, you pay an execution fee (a percentage of order value) and a financing fee (based on capital deployed and duration), both shown up front. Nothing is charged if the deal isn't approved.
- How fast can I get funded?
- Once your order and buyer are verified and your documents are in, funding is typically deployed within 24 to 48 hours.
- Can I finance a government LPO or contract?
- Yes. Confirmed orders from credible institutional and government buyers are exactly the kind of deals LPO financing is built for, subject to verification.
- Who provides the funding?
- Licensed banks and finance partners Reelaay works with. Reelaay structures, verifies and manages the transaction.