Thursday, December 06, 2007

When Your Supplier Says No

Own a small or medium sized business that manufactures or distributes products to other businesses?

With the credit crunch gaining steam, chances are that your customers are taking a little more time to pay your invoices. Depending upon your working capital situation, you may be falling a bit behind on paying your own suppliers.

What will you do if your suppliers then cut off your credit leaving you without the ability to ship product to creditworthy customers?

This was exactly the predicament facing a distributor of safety products who sells to businesses, municipalities and government agencies. Fortunately for this business, their accountant was recently introduced to Funding 911 and gave them my phone number.

In less than a week, Funding 911 arranged for a vendor assurance letter and a factoring facility. Knowing it would receive the first proceeds from the factoring of the invoice, the supplier has agreed to ship product to fulfill three major purchase orders enabling the distributor to significantly grow its business.

The vendor assurance letter also enabled the distributor to avoid the costs of purchase order financing which can take a bite out of your margins.

Do you need help finding the right lender who can come up with a fast, creative and cost effective financing solution for your business? Read "Matchmaking for Business Loans" and give me a call!

Tags : factoring , accounts receivable , vendor assurance letter , working capital , cash flow

No comments: