The Procurement Dilemma for Nigerian Vendors
Corporate procurement cycles frequently demand that vendors deliver finished goods, construction materials, or IT hardware before invoice settlement. Waiting 60 to 90 days for client disbursement can cripple your working capital. **LPO Financing** solves this by funding your suppliers directly or crediting your account so you can execute on time.
Eligible Contract Issuers
Lenders look closely at the creditworthiness of who issued the Purchase Order. Premium issuers include:
Tripartite Account Structure Explained
The safest and most common structure is tripartite financing: your firm, the lending institution, and your corporate buyer sign an irrevocable letter of domiciliation ensuring that once delivery is confirmed, proceeds are wired to a dedicated settlement account.
Fast-Tracking Approval with Kredio
Kredio matches your LPO with specialized trade finance desks across Nigeria, securing disbursements within 48 to 72 hours so you never miss delivery deadlines.
Fast-Track Application Checklist
Follow these 4 simple steps to ensure immediate review and same-day payout directly to your Nigerian bank account:
Frequently Asked Questions
What percentage of the LPO value can I borrow?
Most accredited Nigerian lenders fund between 70% and 80% of the verifiable purchase order value.
Who makes the repayment for the LPO loan?
Repayment is typically structured through a tripartite agreement or domiciliation of contract proceeds: when the corporate issuer pays, the lender deducts principal and interest and remits your profit.
