Working Capital Facilities · Question

Is it possible to get working capital finance against a purchase order?

Short answer

It is possible, but not routine and never assured. Some lenders fund the material, labour and other costs of executing a confirmed order from a reliable buyer, usually with a way to ensure the buyer's payment reaches the lender. The assessment rests on the buyer's standing, your ability to deliver, and how clearly the order translates into cash.

In more detail

An order is a promise of future sales, not a receivable yet. That makes it riskier than invoice funding, so the lender looks for ways to reduce the risk of non-delivery or non-payment.

What a lender typically examines:

The buyer: a well-known, financially sound buyer, ideally one with whom you have supplied before, strengthens the case.
The order terms: quantity, price, delivery schedule, payment terms and any penalty or cancellation clauses.
Your capacity: past delivery record, plant or manpower, and whether input supply is secured.
The cost build-up: how much money is needed, and how much you will bring in as your own margin.
The payment route: a way for the buyer's payment to be received through the account that is financed, often by a documented instruction to the buyer.

Some lenders sanction a short-term, order-specific limit that is closed when the buyer pays. Others handle it through a regular working capital limit, with the order as supporting evidence. Where the buyer is a large organisation, the facility may be linked to an acceptance or confirmation from that buyer.

Check cancellation and quality clauses

If the buyer can cancel or reject goods easily, the lender may decline or reduce the amount, because the order would not reliably turn into cash.

Expect closer monitoring, end-use checks and a smaller amount than the full order value. Costs and conditions vary, so ask each lender what documents it wants before you take on the order.

Key points

Order-linked funding exists but is selective and not guaranteed.
Buyer quality, order terms and your delivery record drive the decision.
Lenders try to route the buyer's payment through the financed account.
You will usually be expected to contribute part of the cost yourself.
Cancellation or rejection rights in the order make approval harder.

Who this applies to

Manufacturers and contractors with a confirmed order but short of funds to execute it.
Suppliers to large buyers with a defined delivery schedule.
Owners deciding whether to accept an order they cannot fully fund.

Last reviewed 3 October 2026

This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.