A business tender involves a company bidding for an opportunity to offer their products or services at a fixed price. Tender funding bridges the gap between order and payment and is much faster and easier to attain than a loan from a traditional bank. Funding is however based on the feasibility of the tender or purchase order awarded to the company. The tender or bid process is designed to ensure that the work to be done is given out in a fair way. Funding for tenders can be applied for once a purchase order has been received for the tender. The tender funder fits the bill for the total cost of the invoice to the supplier, allowing the business to deliver on the order as promised.
Tender funding is beneficial for businesses because there is no need for credit or bank collateral, companies are able to keep up contacts with suppliers, and this type of funding can boost the cash flow of your company, coupled with affordable interest rates.
Government work and state tenders offer a lucrative source of income and potential opportunities, especially for small and medium business holders. Not only do they provide more consistent work for companies, but they also can help spearhead growth. Tenders in South Africa are indeed a lucrative source of income for small business, but can be challenging to negotiate, particularly since legislation has changed, and requirements differ between organisations and government sectors. Getting the process right not only saves time and effort, but it has the potential to set up lucrative income streams. With our many years of industry experience, Dream Team Capital can put together a suitable application for tender funding.
Minimum Requirements for Tender Funding:
- Company Registration Certificates;
- Valid BBBEE certificate;
- Tender / purchase order awarded to the company.
For more information & assistance – Contact DTC