The People's Fund

The People's Fund is a leading purchase order crowdfunding platform that plays a pivotal role in bolstering our economy.

Headquartered in Johannesburg, Sandton, The People's Fund is committed to providing equal opportunities for all aspiring entrepreneurs and businesses. Their primary focus is to offer capital to businesses with government and corporate orders, facilitating their growth and success. Additionally, The People's Fund specializes in crowdfunding assets specifically for BEE level 1 beneficiaries, ensuring inclusivity and empowerment within the business landscape.

Earn royalties from the sale of products delivered

The People's Fund offers an inclusive platform that allows everyone to participate in supporting talented entrepreneurs and earning royalties from the sale of their products.

By providing easy access to funding, The People's Fund empowers entrepreneurs to focus on growing their businesses without the worry of securing necessary funds. Whether you're a budding entrepreneur with a small business or an aspiring innovator, The People's Fund is tailored to meet your needs.

Their dedicated operational team is committed to assisting passionate entrepreneurs on their journey to success, understanding the challenges that come with limited financial resources in the entrepreneurial world. With The People's Fund, you can navigate the sometimes chaotic path of entrepreneurship with the assurance that financial support is within reach.

People’s Fund is driven by people’s growth

You can count on The People’s Fund to kick-start that business idea you’ve always dreamed about. The People’s Fund is the only company driven by people’s growth and building the economy one business at a time. They now have a payment solution allowing you to intergrade your business bank account with their account. To make things easy for both of you during transactions, after completing the project.

The partnerships with companies like Tsonga Africa, THUD, Brownsense, and SIRDAR have had a great influence on the company.

They’ve recently partnered with SEFA in over a half-billion-Rand deal that’s set to run for over the next 5 years. This deal is aimed at funding over 5000 SMEs in the next coming years (approximately five years in a row).

Since its establishment in 2017, they were only making R3000.00 a year. The People’s Fund has now developed rapidly to making R150 Million per year in business since 2019. They say numbers don’t lie! Don’t they?

The People’s Fund preferred client list

The People's Fund specialises in funding purchase orders from both the government and the private sector. To streamline the process, they have created a "preferred client list" that prioritizes first-time collaborations with clients on the list.

However, this doesn't mean that you can't apply for funding if your current client isn't on the list. The ultimate goal is to promote equal participation in the economy, ensuring that everyone has an opportunity to access funding regardless of their client's inclusion on the list. At The People's Fund, inclusivity and support for entrepreneurs are paramount.

The People's Fund provides purchase order finance to support businesses in fulfilling orders from both the government and the private sector.

Their funding is available for projects that can be completed within a timeframe of less than 60 days and generate a profit margin of 20% or more. With a focus on empowering black-owned businesses, they require a minimum ownership of 51% to qualify for their purchase order finance.

What is a purchase order?

A purchase order is a written promise from your client that they’ll pay you as soon as their order is delivered. What happens is that The People's Fund pays your suppliers on your behalf, and you pay them back once your client pays you for delivering what you've promised.

A lot of large companies buy goods and services for their businesses through purchase orders, which helps with the companies’ cash flow and accounting.

Instead of paying upfront or randomly for goods and services, they opt for a purchase order.

Simply because, with a purchase order, companies can pay 30 to 60 days after their order has been delivered. A purchase order is a legally binding document between you and your client. It has all the details of what the client wants, details as;

• What goods and services do they want to be delivered to them
• Where they want them to be delivered
• How much they’re paying for the goods and services
• And when they’ll pay for those goods and services

Advantages of a purchase order

The purchase order issued by your client with the above information gives you the right to take your client to a court of law and sue them. Only if they don’t keep their end of the bargain after you have delivered the goods and services (be that they don’t pay on time as promised)

Opting for a purchase order is a more efficient and secure method for you to do business with large corporations.

Disadvantages of a purchase order

What is bad about a purchase order is that the cash flow is only managed by the organization. The working capital is provisioned to the small enterprise to enable them to do the work listed in the purchase order, and after the delivery has been done the enterprise gets paid and then pays the purchase order capital funder.

How much interest does The People’s Fund charge for their purchase order finance?

The People’s Fund charges nothing. You don’t get charged for the loan. They share the profits you made, starting at 6% of the value of your purchase order of profit share on whatever amount of capital is funded to you.

And this is only paid when the client pays you for the services provided to them. Let’s say you got a purchase order valued at R50 000, then the facilitation fee for that specific order will be R3 000. The entrepreneurs go home with more than 7 times of profit made for their hard work in delivering on the orders.

Also, certain risks determine how much an entrepreneur gets charged, and those are:

1. Client risks (what risks does the company issuing a purchase order possess)
2. Entrepreneur risks (the risks the person receiving and needing to deliver the order might have)
3. Project risks (the work that needs to be done and risks along the way for the project to be a success)