RM Capital Lays Out Steps to Finance Year-End Orders

JOHANNESBURG, October 2026. For South African suppliers facing a rush of year-end orders, RM Capital has published a clear account of how a funded purchase order moves from signed paper to delivered stock. The niche funder, based at Melrose Arch, says many businesses are now being asked to supply goods before the December slowdown. It wants owners to know each step of a funded deal before the documents reach them.

October is often the month when a supplier's order book outgrows its bank balance. A distributor of finished goods might land a contract with a corporate client or a government department and still have to pay its own supplier before it can send a single invoice. RM Capital was set up to close that gap. The firm believes that once owners can see how the process works, much of their hesitation about outside funding falls away.

How purchase order funding works

RM Capital also calls the product tender order funding. With Purchase Order Funding, a business can pay its supplier for goods it plans to resell or distribute to a customer who has issued a written purchase order. The supplier is paid in advance to manufacture or deliver the goods, and the business repays the funding when its own customer settles the account. RM Capital will cover up to 100% of the costs on the purchase order.

Most of these deals are structured as invoice factoring transactions, and factoring is not a loan. RM Capital buys the right to the payment the customer will make, then pays the supplier directly or issues payment guarantees. A growing company can therefore take on bigger orders without adding bank debt or giving up equity.

From order to settlement, step by step

The firm sets out a simple sequence on its website, and this month it is pointing businesses with year-end orders towards it.

The process begins when the business sends RM Capital a copy of the purchase order or a signed appointment letter. With it goes the supplier agreement, a pro forma supplier invoice or a quotation. Together these show what was ordered, who ordered it and what it will cost to fulfil.

Next, RM Capital requests certain details about the business so it can assess the transaction. That assessment covers the main parts of the deal, including the supplier, to confirm it has the reputation and the capability to deliver the ordered products.

When every required document and piece of information is in hand, RM Capital tells the business that the purchase order transaction is approved and confirms any further securities it needs.

A factoring agreement and a guarantee agreement then go out for signature, and the supplier receives the funds. From there the goods can be produced or shipped and delivered to the end customer.

The last step comes when the customer pays the invoice for the purchase order. That payment settles the purchase order funding, and once the funding and its costs are covered, the business keeps the balance.

Which businesses the facility suits

The product is designed for entrepreneurs and growth businesses selling finished goods, raw materials or components, whether to other businesses or to government departments. Goods must be supplied on a supply and delivery basis, with delivery handled by the supplier or outsourced to a reputable third party. Construction, cleaning and security services are not funded under this product, and RM Capital looks for profit margins above 20%.

Every decision depends heavily on the credit worthiness of the customer who placed the order. Because the funding relies on that customer paying on time, a solid purchase order from a dependable buyer counts for a great deal. Many smaller suppliers find this a very different discussion from the one they have with a bank, which usually concentrates on the borrower's own balance sheet and fixed assets.

When owners weigh up Purchase Order Funding Companies, a common question is whether the funder will keep supporting them as they expand. RM Capital cites a deal described on its own website. It funded a medium sized, woman owned BEE company to fulfil purchase orders from a government department in the Western Cape, starting with R850,000. As the company grew and took on larger order commitments, RM Capital kept funding it. Over 18 months it provided more than R5,000,000, helping the business supply essential products to the Western Cape Government.

Why October puts suppliers under pressure

The final quarter of the year brings its own strain. Buyers want stock on the shelves before offices and factories shut for the festive season, and suppliers want to be paid before they let goods go. A business stuck between them can lose an order purely because it cannot pay for the stock quickly enough.

Purchase Order financing was built for that kind of squeeze. Since it is linked to one order and one customer, it can be arranged for the deal in front of the business instead of as a general credit line. RM Capital adds that it offers funding approval in time scales that make commercial sense, with confidentiality and minimal paperwork, and that clients speak to the decision makers directly.

Other working capital facilities

Purchase order funding is one of several short to medium term facilities the firm provides. Through invoice discounting and factoring, unpaid invoices become an asset for raising cash flow, either by factoring a book of debts or by discounting a single invoice. RM Capital also offers accounts factoring to advocates of the South African Bar and to professionals such as doctors, accountants, engineers and architects, with funding that can be approved within 24 hours.

For businesses under short term pressure, the firm builds cash flow funding structures based on expected future cash flow, so core assets needed for rent, payroll and day to day costs are not tied up. Companies that find it hard to obtain funding from mainstream banks can turn to its structured finance, which includes working capital, cash flow and revolving credit facilities tailored to each client's situation.

Getting ready before the order arrives

RM Capital advises businesses expecting orders before December to prepare the key documents in advance. These are the customer's purchase order or appointment letter, a supplier quotation or pro forma invoice, and the basic company information needed for the review. With these ready, the route from order to approval is shorter, and the supplier can be confident that payment will follow.

Owners can read the full qualifying criteria, review the step by step process or submit an application at https://www.rmcapital.co.za/.

About RM Capital

RM Capital is a niche funder located at Melrose Arch, Illovo, Johannesburg. It specialises in purchase order funding, accounts receivable factoring, invoice discounting, bridging and structured finance, and creates short to medium term funding solutions for growth companies. Its clients are usually businesses that cannot secure bank financing in the short term but already have the foundations for long term success. Funding can go towards cash flow or working capital, or serve as a financial bridge tied to specific exit events.