Contract Execution Financing

Execute Bigger Contracts With LPO Financing

Don't lose awarded contracts due to cash flow gaps. Get up to 70% advance on verified Local Purchase Orders. Execute on time. Protect your reputation.

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Up to 70% of LPO Value 90-Day Tenor (Renewable) Direct Supplier Payment

Winning the Contract is Only Half the Battle

You've won a major supply contract. But now you need capital to purchase materials, pay workers, and execute on time. Traditional banks won't advance funds against your LPO—or they take weeks to process while your deadline approaches. Don't let funding gaps cost you the contract you worked hard to win.

How LPO Financing Works

Simple, transparent process designed for Nigerian contractors and suppliers

1

Submit Your LPO

Share your verified Local Purchase Order from corporate or government client

2

Verification & Assessment

We verify the LPO authenticity and assess your capacity to execute

3

Advance Up to 70%

Receive up to 70% of LPO value as working capital to execute the contract

4

Direct Supplier Payment

We pay your suppliers directly for transparency. You deliver, get paid, settle facility

Why Use LPO Financing?

Preserve your cash flow while taking on larger, more profitable contracts

Preserve Working Capital

Don't drain your cash reserves. Use LPO financing to fund specific contracts while keeping capital for other operations

Fast Approval Process

Unlike bank loans that take months, LPO financing can be approved in days once the LPO is verified

No Traditional Collateral

The verified LPO itself serves as primary security. No need for property or equipment as collateral

Flexible Tenor

90-day facilities that can be renewed based on contract timeline and performance

Transparent Structure

Direct payment to suppliers ensures funds are used for contract execution, not diverted

Scale Your Business

Take on multiple large contracts simultaneously without overextending your finances

Eligibility Requirements

What you need to qualify for LPO financing

Required Documents

  • Verified Local Purchase Order (LPO) from credible buyer
  • Company registration documents (CAC)
  • Valid tax clearance certificate
  • Bank statements (6 months)
  • Proforma invoices from suppliers

Ideal For

  • Construction contractors with government/corporate contracts
  • Suppliers to oil & gas, FMCG, manufacturing sectors
  • Real estate developers with material supply contracts
  • Registered businesses with track record of contract execution
  • Businesses supplying to reputable corporate or government entities

Contractor Success Story

IK

Ibrahim K.

Construction Contractor, Lagos

"We won a major supply contract for a commercial development but didn't have the working capital to purchase materials. Democrac's LPO facility allowed us to deliver on time without tying up our cash flow. The process was fast and professional. Now we confidently bid on bigger contracts knowing we have financing support."

LPO Financing FAQs

We typically advance up to 70% of the verified LPO value. The exact percentage depends on the buyer's credibility, your track record, and the nature of the contract.
Standard tenor is 90 days, which aligns with typical contract execution timelines. Extensions are possible based on performance and circumstances.
Rates are competitive and based on the LPO value, buyer credibility, and tenor. Our rates are typically lower than traditional bank overdrafts and much faster to access.
LPO financing is primarily for supply contracts involving tangible goods. For service contracts, we offer other working capital solutions. Discuss your specific contract during consultation.
Once we receive all required documents and verify the LPO, approval can be completed within 3-5 working days. Fund disbursement follows immediately after approval.

Ready to Execute Your Next Contract?

Don't let funding gaps cost you profitable contracts. Get the working capital you need to deliver on time and grow your business.

📍 Visit our office: GA247 Kingfem Plaza, Wuse II, Abuja