LPO Financing in Nigeria

What LPO Financing Is

LPO stands for Local Purchase Order. If your business holds a confirmed purchase order from a credible buyer but lacks the working capital to fulfil it, we provide the funds to cover execution. When your buyer settles the invoice, the facility is repaid from those proceeds.

It is not general-purpose lending. It is tied to one specific order, which is precisely why it can be arranged faster than conventional business financing — the order itself is the clearest evidence of how repayment will happen.

Which Businesses Qualify

LPO financing is available to registered businesses in Nigeria that hold a valid, verifiable purchase order from a reputable buyer — such as a government agency, corporate client, or institution.

We assess three things: the credibility of the awarding body, the strength and verifiability of the order, and your demonstrated capacity to deliver against it. Applicants should be able to provide a record of previously executed orders.

Government and Corporate Contracts

We finance both. Government contracts are common in this market, and we understand how their payment cycles behave. In practice, the majority of the LPOs we finance are corporate. Either way, each contract is assessed individually on the verifiability of the order and the credibility of the awarding body.

Collateral Is Required

All Swaco facilities are secured, and LPO financing is no exception. Collateral is required in addition to the purchase order itself. The order establishes how the facility will be repaid; the collateral secures it.

We accept landed property, vehicles, gold assets and other verifiable assets. Our credit team confirms suitability during assessment.

Documentation Required

How the Facility Is Sized

Financing is structured as a percentage of the LPO value. That percentage is determined by the buyer's credibility, your track record as a supplier, and our credit team's risk assessment. A strong order from a well-rated buyer, presented by a supplier with delivery history, will support a higher proportion than an order against an unfamiliar counterparty.

Financing Multiple Orders

In many cases we can support more than one order simultaneously, provided each meets our qualifying criteria and your total exposure remains within acceptable limits. Each order is assessed on its own merits rather than approved automatically because a previous one was.

For businesses running several contracts concurrently, this is worth discussing with us early — planning a facility across a pipeline is more efficient than applying order by order.

Repayment

Repayment is tied to your buyer's payment once the order has been delivered and invoiced, structured to align with the project timeline. This keeps the facility matched to the cash flow it was created to bridge, rather than imposing a repayment schedule that runs ahead of your receivables.

How Quickly It Can Be Arranged

Provided your documentation is complete, LPO financing is typically processed faster than conventional business financing, because it is tied to a confirmed order with an identifiable repayment source. The delay is almost always due to documentation rather than decision-making — so gather everything before you apply.

Why Borrowers Choose Swaco