02 Oct Purchase Order & Supplier Financing in Uganda – How One Oil and Gas Supplier Scaled Up

The Bigger Picture: Oil, Gas, and the Cash Flow Gap

Uganda’s oil and gas sector is buzzing with promise. Multinationals are preparing supply chains, local companies are angling for their slice, and government policy is designed to keep more of the value onshore. But beneath the optimism, a practical problem gnaws at SMEs: contracts demand capital long before they pay it out. Banks ask for years of audited records. Suppliers are asked to deliver tomorrow. And in between, many promising firms suffocate.

The Challenge: A Pilot Order That Could Make or Break

Our client, a Ugandan SME, had finally landed a pilot purchase order from a multinational in the sector. This was the classic test contract deliver flawlessly and you’re in the pipeline for larger, more lucrative orders. Miss a beat, and you’ll be permanently sidelined.

The company had staff, technical ability, and a proven operational record. What it lacked was the upfront capital to mobilize: to buy inputs, arrange logistics, and cover payroll. Cash flow was tied up in receivables. The banks were no help. Too new, too small, not enough “track record.”

The Impala Approach: Financing Built on Reality

Impala Credit structured a purchase order financing Uganda solution anchored in what mattered:

• The validity of the purchase order from a blue-chip counterparty.
• The company’s existing cash flows from other clients.
• Assets and agreements that could support repayment.

We advanced the funds within days, structured as supplier financing tied directly to the delivery of the contract.

The Result: From Test to Traction

The SME delivered on time. The multinational marked them down as reliable. Within months, new contracts followed, larger in size and scope. The bridge loan — a small injection against a single order — unlocked a growth path that banks would have left to rot.

Why This Matters

Oil and gas in Uganda is not just about rigs and refineries. It’s about local companies gaining credibility, proving capacity, and scaling. But to do that, they need liquidity at the right time. Bridge financing converts paper contracts into real delivery capacity. Without it, the contracts sit idle, and SMEs remain “potential” instead of “proven.”

The Punchline

Banks watch from the sidelines. Impala funds the play.