02/02/2026
EQUITY FINANCIAL SERVICES LTD WILL THIS YEAR 2026 FOCUS ON PURCHASE ORDER FINANCING AND INVOICE DISCOUNTING.
February 02, 2026
What is purchase order financing ?
Purchase order financing is a short-term funding solution where a FINANCIAL LENDING COMPANY ie Equity Financial services (EFS) called a third-party lender pays a Business' s (borrower's) suppliers directly for the goods needed to fulfill a confirmed customer order.
This allows businesses, especially SMEs, those without sufficient working capital or access to traditional loans, to accept and complete large orders.
How It Works
The process is a transaction rather than a traditional loan, involving four parties: the business (borrower), the customer (purchase order issuer), the supplier, and the financing company. (EFS)
1. A business (borrower)receives a confirmed purchase order from a creditworthy customer.
2. The business (borrower) applies for financing, submitting the purchase order and the supplier's invoice to the financing company (EFS).
3. Upon approval, the financing company (EFS) pays the supplier of goods as per the supplier's invoice for the goods.
4. The supplier ships and delivers the goods directly to the end customer. (Purchase order issuer)
5. The business (borrower) invoices the customer (Purchase order issuer), with written instruction to pay the full invoice amount directly to the financing company. (EFS)
6. The financing company (EFS)deducts its fees as per agreed terms and conditions with the borrower and transfers the remaining balance (the business's profit) to the business. (borrower).
EFS - Proudly contributing to the growth of SMEs in Zambia by providing workable and sustainable working capital solutions.
MONEY WHEN YOU NEED IT !
Yosi Miti
EQUITY FINANCIAL SERVICES LTD
CEO .
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