LOCAL PURCHASE ORDER (LPO) FINANCING

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Local Purchase Order?

Know More About LPO

LPO financing allows clients who have obtained purchase orders or letters of award to deliver goods and services or to carry out contractual works.

In Accounting, LPO means Local Purchase Order, document issued by a buyer to a seller, indicating the products, quantities and agreed prices for products or services that the seller will provide to the buyer within the national or local boundaries.

The local purchase order is important in that it protects the seller from incurring losses and the buyer from receiving wrong products. Most organizations have a local purchase order sample which is used to create other local purchase orders.

Types of Purchase Orders

There are four main types of purchase orders discussed below:

  1. Standard Purchase Order
    This is a type of purchase order from the buyer to the seller of the product when you are certain about the order details such as delivery date.

  2. Contract Purchase Order
    When the use of the product by the business varies with time, then the contract purchase order can be used. It is intended for use for a specific period of time usually one year.

  3. Blanket Purchase Order
    This is a type of purchase order from the buyer to the seller of the product when you are certain about the order details such as delivery date.

  4. Planned Purchase Order
    Planned purchase order is used when the delivery date is unknown but the other details such as the quantity of the product is known and the purchases are long term.

LECON'S COMPETENCE

LECON Financial Services Limited, as the oldest and foremost leasing company in the country, affords its customers over 30 years of experience, expertise and in-depth knowledge of the market and business.

As a subsidiary of the Bank of Industry Limited, LECON is a beneficiary of BOI’s good working relationships with foreign development finance institutions which translates to access to reasonably priced funds.

This advantage is ultimately passed on to our customers in the form of competitive lease cost