As the South African financial year settles into its second half, RM Capital is helping growth companies convert confirmed orders into delivered sales.
Johannesburg, June 2026. With many South African businesses moving into the back half of the financial year and weighing up how to meet rising demand without straining their cash position, RM Capital is drawing attention to the role that Purchase Order Funding can play in turning confirmed orders into completed, paid-for sales. The Johannesburg based niche funder works with entrepreneurs and established companies that have secured orders they are ready to fulfil but lack the upfront working capital to pay their suppliers and deliver on time.
The challenge is a familiar one for growing businesses. A company wins a sizeable order from another business or a government department, but the cash needed to pay suppliers and produce or procure the goods is due long before the customer settles the invoice. That timing gap can force a business to turn away work it is otherwise well placed to deliver. RM Capital structures funding around exactly this moment, allowing a business to accept the order, pay its suppliers, and deliver to its customer rather than letting an opportunity pass by.
How purchase order funding works at RM Capital
RM Capital approaches purchase order funding as a form of invoice factoring rather than a conventional loan. When a customer issues a written purchase order, RM Capital purchases the rights to the payment that will be received from that customer. It then pays the suppliers, or guarantees their payment, so the business can procure the goods and fulfil the order. The funding can cover up to 100 percent of the purchase order cost, which means a business does not have to find the supplier payment from its own reserves.
Because the structure rests on the customer paying the resulting invoice, RM Capital looks closely at the creditworthiness of the customer placing the order, as well as the reputation and delivery capability of the supplier. The model suits businesses that supply finished goods, raw materials, or components to other businesses or to government departments. It is designed for the supply and delivery of goods, with delivery handled either by the supplier or by an outsourced third party, rather than for services such as construction, cleaning, or security.
The process is set out in clear steps. A business submits the purchase order along with its supplier documentation, then provides the wider business information needed for the transaction to be reviewed. Once RM Capital has assessed the order, it issues an approval notification. The business and RM Capital sign the factoring and guarantee agreements, and funds are paid to the supplier so production or procurement can begin. When the customer eventually pays the invoice, the proceeds cover the funding costs and the remaining balance is returned to the business. To qualify, a business generally needs to demonstrate profit margins above 20 percent, which keeps the arrangement workable for both sides.
Why it matters mid year
The middle of the calendar year is often when South African companies take stock of their order books and plan for the demand that builds towards the end of the year. For many, the constraint is not a shortage of orders but a shortage of the short-term capital needed to act on them. This is the gap that purchase order funding is built to close. By freeing a business from having to fund supplier payments out of its own pocket, the facility lets management say yes to larger orders and to customers they might otherwise have had to decline.
This focus on confirmed orders is part of what sets specialist Purchase Order Funding Companies apart from traditional lenders. Rather than assessing a business purely on its balance sheet or its track record with a bank, RM Capital looks at the strength of the order and the parties involved in fulfilling it. That makes the funding accessible to companies that are growing quickly, including those that may not yet meet the criteria for conventional bank financing but that hold solid orders from creditworthy customers.
A niche funder built around the client
RM Capital describes itself as a niche funder offering innovative and customised funding solutions, and the way it positions Purchase Order financing reflects that. The company emphasises fast turnaround times, minimal paperwork, and the utmost confidentiality, and it works directly with the decision-makers in a business so that solutions can be structured around client specific requirements. For a business owner juggling suppliers, customers, and cash flow at the same time, that direct line and quick response can be as valuable as the funding itself.
Purchase order funding sits within a broader set of solutions that RM Capital offers to growth companies needing short to medium-term capital. These include accounts receivable factoring, which is tailored for professionals such as advocates, doctors, accountants, engineers, and architects and can be approved quickly with minimal paperwork. The company also offers invoice discounting, which converts unpaid invoices into immediate cash and lets a business use those invoices as an asset to create a flexible source of cash flow. Its cashflow funding is aimed at businesses facing short-term cash constraints that are holding back their growth, while its structured finance provides custom solutions for companies that cannot secure traditional bank financing. Across all of these, the common thread is helping businesses unlock the value tied up in orders, invoices, and future income.
Supporting South African growth businesses
The businesses that turn to RM Capital tend to share a profile. They are entrepreneurial, they are growing, and they have demand they want to meet. Many sell finished goods to other businesses or to government departments, where order sizes can be large and payment terms can stretch out over weeks or months. For these companies, the difference between funded and unfunded is often the difference between scaling up and standing still. By taking on the supplier payment and tying repayment to the customer settling the invoice, purchase order funding lets a business grow into its order book instead of being limited by its current cash balance.
RM Capital operates from Melrose Arch in Illovo, Johannesburg, and works with clients across South Africa. As companies plan for the second half of 2026 and the trading that builds towards the end of the year, the message from RM Capital is straightforward. A confirmed order does not have to wait on available cash. With the right funding structure behind it, that order can be paid for, fulfilled, and delivered, with repayment following naturally once the customer settles.
Learn more
Businesses that want to understand how purchase order funding could support their next order can find full details of RM Capital’s offering. To find out more about RM Capital, visit the RM Capital website at https://www.rmcapital.co.za/purchase-order-funding. RM Capital welcomes enquiries from growth companies that have secured orders and are looking for a funding partner to help them deliver.
About RM Capital
RM Capital is a Johannesburg based niche funder that provides customised funding solutions for entrepreneurs and growth companies across South Africa. Operating from Melrose Arch in Illovo, it offers purchase order funding alongside accounts receivable factoring, invoice discounting, cashflow funding, and structured finance. Its focus is on helping businesses unlock the value tied up in confirmed orders, unpaid invoices, and future income.
Media Contact
RM Capital
Email: [email protected]
Phone: +27 11 447 7596
Website: https://www.rmcapital.co.za/