Last reviewed October 2026
- What it is
- Short-term funding against a local purchase order from a procuring entity, provided by a licensed partner lender, to buy and deliver the goods or works ordered.
- Who it is for
- Suppliers and contractors who have won an order but do not have the capital to fulfil it before the buyer pays.
- How it is paid
- The lender's interest, fees and tenor are the lender's terms, repaid when the buyer pays; our arranging work is quoted and paid by M-Pesa.
- Turnaround
- Set by the lender's appraisal; a complete application is faster.
- Delivered by
- A licensed partner lender; Tendakazi arranges and relays.
What the service covers
A local purchase order or local service order from a public body is a promise to pay after delivery, and delivery costs money first. LPO financing is a short-term facility from a lender, secured on the order, that pays for the goods or works and is repaid when the buyer settles, typically with a tenor of up to a year.
We prepare the request from your Tendakazi record, the order and your documents, and relay it to a partner lender. The lender appraises it on its own terms; if approved, you contract with the lender directly. Your record on the platform, the contracts delivered and the payments received, travels with the application.
When you need it
- An order is larger than your working capital
- Suppliers want payment on delivery and the buyer pays in months
- A second order arrives before the first is paid
- You would otherwise decline an order you can deliver
What we need from you
- The LPO or LSO and the contract or award it comes from
- Your supplier quotations for what you must buy
- Company documents, bank statements and accounts, most of which are in your vault
- Your delivery plan and when you expect the buyer to pay
How it works, step by step
- Request LPO financing from the services page and upload the order.
- We check the application is complete and quote our arranging work.
- The request goes to a partner lender, with your platform record.
- The lender appraises and offers terms directly to you; you decide.
- On approval the lender funds the purchase; repayment follows the buyer's payment.
What it costs
Interest, fees, tenor and any security are set by the lender and depend on the order, the buyer and your record. They are the lender's terms and are not stated here. Our arranging work is quoted before you pay, and you are never obliged to accept the lender's offer.
Mistakes it prevents
- Accepting an order you cannot fund and defaulting on delivery
- Paying suppliers late and losing the margin to penalties
- Borrowing on terms unrelated to the order's payment timing
- Applying with an incomplete file and losing weeks to questions
How it fits the rest of Tendakazi
The order usually comes from a bid prepared on the platform, so the contract, award and documents are already there. Payment follow-up and pending bills recovery help the buyer's payment arrive, which is what repays the facility; invoice discounting is the equivalent once you have delivered and invoiced.
Questions
Does Tendakazi lend the money?
No. Funding comes from licensed partner lenders on their terms. We prepare and relay the request.
What interest will I pay?
The lender sets it, by the order, the buyer and your record. It is on the lender's offer, which you can decline.
Which orders qualify?
That is the lender's decision; orders from public bodies and established private buyers are the usual case.
How is it repaid?
When the buyer pays, usually with payment directed to the lender under the facility's terms.
Deliver the order you have won.
Read next
General information for suppliers, not legal, tax or financial advice. Procurement law, regulations, thresholds and government systems change: check the current rules with the procuring entity, the Public Procurement Regulatory Authority (PPRA), the National Treasury or KRA, and speak to an advocate or tax adviser about your own case.