What is Tender Funding?
South African tender funding companies provide capital to entrepreneurs and enterprises so they may fulfill government procurement orders.
Once a purchase order has been obtained for the tender, funding can be requested. The firm is able to fulfill the order as promised since the tender funder covers the whole amount of the supplier's invoice.
After the customer has paid the business for the items, the business will pay the financing tender based on agreed-upon terms in accordance with the signed contract.
Benefits of Tender Funding
There is no need for credit or bank collateral
Boost the cash flow of your company
Able to keep up contacts with suppliers
Affordable interest rates
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Tender Funding
Do you have a tender that needs funding for more than six months? KENOTE FINANCE can walk that journey with you.
Tender funding works similar to purchase order funding with the difference being that tender funding has a project span of more than 3 months to 3 years. Over the years, our tender funding has assisted many suppliers with meeting their yearly commitments of supplying and executing their tenders.
Our tender funding ranges from R 1 Million to R 8 Million.
Our tender funding covers construction, mining and any related works projects. Whether you need us to pay labour or purchase material for you to manufacture, we will journey with you.
Why Us?
Kenote Finance provides purchase order financing for any type of business, regardless of industry. We have a simple application process and competitive rates. Our application process is quick, easy to use, and hassle-free.
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Easy Access
Easy Access to Credit
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Quick Approvals
Feedback on application within 24 hours
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Low Interest Rates
Our interest rate is based on expenditure
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Customer Support
Our team is dedicated to guiding you through the entire process
Tender Funding FAQs:
Your Questions Answered
Get all the details about tender funding with Kenote Finance. From eligibility requirements to repayment terms, we’ve compiled the most common questions to help you better understand how our tender funding solutions can support your business.
1. What documents are needed to apply for tender funding?
To apply for tender funding with Kenote Finance, you will typically need to provide:
- A valid purchase order or contract for the tender
- Proof of business registration documents
- Supplier quotes or invoices
- Several months of bank statements
- A detailed project plan, if applicable
These documents help ensure that your business is eligible and that the project is viable for funding. Apply online for Purchase Order Funding.
2. What are the common repayment terms for tender funding?
Repayment terms for tender funding generally vary depending on the project's length and scope. Common terms include:
- The repayment period typically aligns with the duration of the project, which could range from a few months to up to three years.
- Repayments usually start after the tender is completed and the customer has paid for the goods or services.
- Interest rates and fees are agreed upon at the start of the contract and may vary depending on the project’s financial needs.
Kenote Finance offers flexible repayment terms to accommodate the unique needs of each project.
3. How does tender funding differ from other forms of project financing?
Tender funding is specifically designed to support businesses that have been awarded a government or private sector contract but need working capital to fulfill the contract. Here’s how it differs:
- Purpose: Tender funding is targeted at businesses fulfilling tenders, whereas general project financing can be used for a wider range of business needs.
- Duration: Tender funding is typically for longer-term projects (3 months to 3 years), whereas other types of financing may cover shorter-term needs.
- Risk: Tender funding focuses on mitigating the risk of cash flow issues during the project, whereas project financing often involves higher risks and interest rates.
This makes tender funding a better solution for businesses that need predictable, long-term financial support to complete government or large private contracts.