| FINANCIAL BUSINESS RECEIVABLES (FACTORING) |
| You've just shipped $50,000 worth
of your product to Megastore X. They will pay you in 60 days when they
get around to it and once they've had you finance their inventory for
them. But you just got another great order from Store Y, and you need
the cash to produce it. What are you going to do?? You can't turn down
the order that you worked 2 years to get, but you can't deliver either
without cash. You need to pay your employees. Your suppliers won't give
you more credit until you've paid your last bill...
Enter the savior: Factor Man A factor will
advance you money against your receivable. For example, you could get
$40,000 against the Megastore X invoice (maybe more or less depending
on the store, the product, etc...). Now, you're back in business producing
your next order. |
