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    3 Replies Latest reply on Oct 19, 2011 9:57 AM by LUCKIEST

    Financing Inventory

    Jettoz Newbie

      I have a new small start up company. I purchase inventory from China. As a new business, I have limited capital but have a buyer interested in making in a very large purchase - I do not have the funds available to buy the inventory -even if he puts down a large deposit - I still have significant risk. Do I only do small increments? If anyone has any suggestions as to how I can accept the order and move forward, I would be most grateful.

        • Re: Financing Inventory
          CorpCons08 Ranger

          Yes, your best bet may be to purchase small increments for your buyer. If you purchase everything, even through lending, you may get stuck with a lot of merchandise that you are unable to move. This will help you build up your cash flow for future purchases.

           

          Regards,

           

          Dan

          • Re: Financing Inventory
            Navigator

            I would have to concur with Dan on this one. I would be concerned that, if your buyer couldn't move the merchandise it could be returned and become your problem to move. Working out a regular schedule with the buyer where he/she is restocked on a regular basis while paying for each consecutive order as they go could be a way to ensure that you could provide the goods for this buyer while receiving regular payments with less risk of any returns. Best of luck to you as you move forward and do let us know how things worked out!

             

             

            ~Moni

            • Re: Financing Inventory
              LUCKIEST Guide

              The key to business is selling. You NEED inventory to sell.

              To be successful in business, your beliefs have to become your cause.

              All of us have the capacity for greatness.

              To be great you need to satisfy your customers.

              In business, sometimes you have to take a risk to succeed.