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    6 Replies Latest reply on Aug 14, 2008 2:44 PM by FactorFunds

    PO Financing

    helpdonna Newbie

      My Company is an apparel manufacturing and importing company based in the US.

       

      Although we have been in business since 2003, the company has been importing apparel only in the last 2 years. Our company is growing and we have gotten several large orders for t-shirts and denim pants. Since we are a small company we do not have a large bank account and we want to learn more about:

       

      -PO Financing

       

      -Invoice Factoring

       

      -Finding investors

       

      Basically, we need financing to open a letter of credit to the factory. We would appreciate advice from those who may have experience with factoring or have any ideas how a small business can get financing for guaranteed orders.

       

      *We need financing from companies that deal with apparel companies. We have found PO financing and factoring for trucking companies.

       

      Any help/advice is greatly appreciated!!
        • Re: PO Financing
          Milleisen Scout
          Donna - I have some contacts that lend in the apparel industry and might be able to help. I'd need a little better understanding of the size of your business and your general financial situation before I'd know for sure if it would be a fit. These lenders are more asset based lenders than factoring companies. Please contact me, my info is in my profile.
          • Re: PO Financing
            LUCKIEST Guide
            PO Financing, Welcome

            It would help if you told us more, like where are you?? and how do I get in touch with you??
            Do you have an Accountant??

            Do you know about SCORE?? SCORE is FREE and can advice you about P O Financing,
            Invoice Factoring and Finding Investors. One of the first items an investor will want to see
            is a Business and Marketing Plan. Again SCORE or I can help you and your company.

            You can reach me at " pdeig@juno.com " LUCKIEST
            • Re: PO Financing
              apexfunding Newbie
              Donna,

              Give me a call to discuss your business funding needs further. I can be of assistance.

              Best Regards,
              Steve Do
              Business Consultant
              Tel:(832) 483-7485
              • Re: PO Financing
                farang1 Newbie
                Donna,

                Not enough info to really get into details, but here are some basics.

                P.O. Financing -

                Generally you can get P.O. financing for the contract value of the goods you are purchasing to fulfill a firm P.O. from a customer.
                P.O. lenders look at the strength and history of the supplier.
                P.O. financing is for the value of the goods you are purchasing and generally will not include and process costs you have after receiving the goods and before passing on to your customer (packaging/re-packaging, assembly, etc.)
                P.O. financing will not generally not cover tariffs or duties
                P.O. financing will generally not include freight charges, so if you are buying in Asia and shipping to US, you need to consider that.
                P.O. financing can be set-up with an L/C to the supplier.
                Proceeds from P.O. financing go directly to the supplier.

                A/R Financing -

                Lender looks to the strength and history of your customer
                Lender will advance something less than full value of invoice
                Many A/R finance companies will also do P.O. financing which is convenient as a simple process exists to convert financed P.O.'s to A/R financing.

                Last, P.O. financing is costly with rates possibly twice those of A/R financing.

                Hope I'm not just telling you something you already know.
                • Re: PO Financing
                  hjs_23294 Newbie

                  Hello my name is Mr.Brown I'm the manager of MCA (MERCHANT-CLUB OF AMERICA) I would like to speak to you about a "working capital advance for you company". This program will be perfect for what you are try to do.. please call me at 1-866-374-9557 thank you.
                  • Re: PO Financing
                    FactorFunds Newbie
                    We can help, we are a financial firm that provides, accounts receivable financing and PO financing. Contact me at the numbers below so we can discuss your specific scenario and start assisting you immediately.

                    305-792-2366 X 514
                    Angie Botero