| FINANCIAL BUSINESS PURCHASE ORDERS - continued |
| Given these risks, far fewer companies
are interested in financing purchase orders, and typically those that
do want an existing factoring relationship before committing their funds
to riskier waters. This does not however mean that it can't be done without
prior relationships, but your own track record will need to be stronger
than for a factoring deal (where little or no track record is acceptable).
Of course, look first at the obvious: talk to your suppliers about payment terms, and maybe even to your employees, especially if they have a stake in the company. If they will work with you to produce the product, they can get paid by factor money within 24 to 48 hours of shipping the product to the client. Another alternative: Asset based lending |
