| When you get a purchase order and don't
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| | receive the purchase
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| have the money to get the inventory or
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| | order and the day the order is delivered
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| parts to fill the order, what do you do?
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| | and the day the invoice is then paid. If
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| You factor your receivables, right? Not
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| | it
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| if you
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| | takes 6 months to get the order produced
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| don't have enough receivables right now.
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| | and delivered and another 3 months for
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| You would get a loan or line of credit,
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| | your customer to pay, it will be more
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| wouldn't you?What if you don't have
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| | expensive than a turn around time of 2
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| enough business history or enough credit
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| | months and 45 days to be paid. In that
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| or enough assets
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| | case, you better have a higher profit
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| to get the loan? The next solution might
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| | margin.The most important thing to do is
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| be to use your credit cards.What if this
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| | look at all possible solutions when you
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| order is too big for your credit cards or
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| | get an
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| you don't have credit cards?
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| | order you know you can't fill easily.
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| Even though this order would help your
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| | Don't give up and refuse the order
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| business grow substantially and put you
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| | because you
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| on
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| | don't have enough money to deliver.
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| the road to success, you might have to
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| | Factoring has been around for thousands
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| refuse it, right?Wrong! If your customer
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| | of
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| who sent you the purchase order is credit
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| | years, it is safe, quite inexpensive and
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| worthy and your
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| | will help your business grow.Talk to your
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| supplier who will produce your order has
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| | broker and see what he or she can do for
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| a history of producing quality goods on
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| | you, there are solutions to
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| time, you can probably get purchase
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| | almost all problems. Sometimes a Letter
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| order financing. This is sometimes called
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| | of Assurance or a 3-party Agreement can
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|
| |
| | be drawn up which gives your supplier a
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| purchase order factoring.The purchase
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| | guarantee that they will be paid out of
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| order funder advances money to pay for
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| | the
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| the inventory or issues a
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| | factoring proceeds. Then instead of
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| Letter of Credit and the supplier sends
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| | requiring payment on or before delivery
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| you the goods. You deliver the order to
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| | (because you are not credit worthy yet),
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| your
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| | they will give liberal terms because your
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| customer, generate an invoice and then a
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| |
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| factoring company pays you an advance
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| | factoring company is paying them. If you
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| on the invoice. The first thing that
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| | can do it this way, you may not need the
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| gets paid is the purchase order funding
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| | purchase order funder at all and will
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| company.You get the rest of this advance
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| | only have one set of fees -- more than
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| for operating capital and get the rest of
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| | straight
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| the invoice
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| | factoring but less than both fees with
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| amount when your customer pays the
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| | the two-step process I described.A good
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| invoice. A small fee is paid out of that
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| | broker will be working with many
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| amount
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| | financial companies that all do different
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| to the factor.So, you see, this is a
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| |
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| two-step process. You work with the
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| | things and when one solution doesn't
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| purchase order funder
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| | work, will try another. So keep trying,
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| and also a factor, since the purchase
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| | don't
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| order funder gets their money when the
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| | automatically refuse that new
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| purchase order is filled (when your
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| | order.Donna Poisl is President of
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| customer receives the order).As you can
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| | Creative Funding Solutions. CFS works
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| imagine, this is a bit more expensive
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| | closely with
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| than just factoring, since both
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| | several of the best factors and p.o.
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| companies will charge a small fee. Your
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| | funders in the country, each with
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| profit margin should be at least 20% and
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| | different rates,
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| preferably more for everyone to make a
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| | fees and requirements and is able to
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| little bit of money.There should also be
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| | find the best one for each client.
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| a fairly short time between the day you
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| |
|
