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Miles, To really be able to help you, tell us more.
Please explain "sales locked up due to my inability to know how to get my clients financed"??
What kind of industry??, Is this YOUR company?? or are you a salesperson??
Finally, why is it your responsiblity to get your clients financed??
The more you share, the better the answers.
I am working on selling my products to the south west united states
region and right now I'm specifically targeting certain areas to get things in
motion. These are pre-fabricated products I am manufacturing, delivering, and
installing with the price tags of $2500 to $38000 with the possibility to go
Right now I have a few clients who have asked me to get them financing in order
for them to complete the purchases which totals almost $60,000 in possible
sales if I could find them financing. I am not nearly stable enough yet to
possibly finance them my self being that this is a fresh venture I'm pushing
If I can find a way to finance my clients, that will open a whole new market
for me. I was looking into accounts receivable funding but from my
understanding the product has to already be built and delivered to the customer
and the problem with that is I need the initial funding to pay for the
materials to build the products right now.
I guess a good example of what I am looking for would be GE Bank for instance
financing JCPenney customers via signature credit cards to be able to buy their
products. But I wouldn’t want credit cards, just the loan. Are there any banks
or companies open to working with small businesses in a situation like this?
Thank you all for all the responses so far, it's very much appreciated
HSBC does a lot of financing for some of the larger corporate entities such as Best Buy, there may be a division that services small companies as well.
Miles if you can afford it how about offering in house financing. You could request a loan against your receivables and based on the rate you are charged for your loan you could charge your clients an even higher rate to finance from you. Think about it this way, if you could get a loan for 60K at a 7% interested rate then you could charge your individual clients 12 maybe 13% to borrow from you.
Ed OGee above has a good idea. However you are going to have to be super strong personally to get business money at 7%.
I am also concerned about the clients....why would anyone book orders without having the means to pay/finance already figured out? Have you determined that these clients are creditworthy? Have you checked references? There are a lot of unanswered questions here.
I think CitiCapital has a Private Label Equipment Group that tailors captive finance programs for equipment manufacturers and dealers. I know BoA has something similar for boat builders and dealers. You didn't say exactly what your product is, but maybe those two examples will help point you in the right direction. Good luck!